(Reuters) – France’s new Socialist government announced tax rises worth 7.2 billions euros on Wednesday, including heavy one-off levies on wealthy households and big corporations, to plug a revenue shortfall this year caused by feeble economic growth.
In its first major raft of economic measures since Francois Hollande was elected president in May promising to avoid the painful austerity seen elsewhere in Europe, the government targeted companies and the rich with tax hikes.
An extraordinary levy of 2.3 billion euros ($2.90 billion) on wealthy households and 1.1 billion euros in one-off taxes on large banks and energy firms were central parts of an amended 2012 budget presented to parliament.
The law, which also includes increases in taxes on stock options and dividends and the scrapping of tax exemptions on overtime, should easily win parliamentary approval before a July 31 deadline, given the Socialists’ comfortable majority.
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