France To Hit Supercars With Luxury Taxes

French President Emmanuel Macron is set to propose a tax which will affect supercars, luxury yachts, and precious metals.

Since taking office, the former banker has scrapped the country’s long-standing wealth tax and is set to replace it with a new tax on goods which fail to contribute to France’s economy, such as supercars.

No indication has been given as to how steep the taxes on supercars would be but they wouldn’t be without precedent. In Australia, for example, the Luxury Car Tax imposes a 33 per cent levy on vehicles that cost more than $65,094, those which consume more than 7L/100 km and $75,526 for those more fuel-efficient exotics.

Speaking to The Independent, leader of the Republic on the Move parliamentary group Richard Ferrand said, “The idea of the wealth tax reform was that there should not be a brake on contributors to economic production, that we suppress taxes that deter investors.

“Taxing real estate wealth is compatible with this, but goods such as yachts, luxury cars or precious metals do not contribute to the productive economy either.”

PHOTO GALLERY

  • ScubaScuba

    the tax on cars and yachts is a smokescreen. they are really after people loading up on gold to reduce currency risks of the euro. disgusting.

    • Felix

      Sell EUR/USD & Buy XAU/USD … store it abroad and you’re good to go!
      On a side note, having lived in France for a few years, there is a big cultural issue. “Growth mindset” is completely alien vocabulary to a vast majority!

  • Richard Sloman

    The irony on this article is the Bugatti being one of the most expensive cars built in France… Good way to chase business away…

    • CarCzarDesigner

      Tax the Rich till they are no more. But what should you expect from a country that is notorious for persecuting its citizens, so those with the Popular vote can retain more authority & control?

      • Sure we are persecuted.

    • Bugattis are assembled in France, most parts are made in Germany, the tax is on buyers, most buyers are not in France, or do not register their car in France.

  • SteersUright

    Well done for having the guts to try and create a more equitable society. Streets and infrastructure, social services, etc do not pay for themselves. It disgusts me that in the USA, the top 1% have stood idly by, reaping unheard of gains in the billions of dollars, yet we can’t afford to keep up our bridges, streets, etc. Glad to see some countries taking this initiative.

    • John

      yea.. i’m sure the top 1% is complaining on carscooops.com comment section and making billions.

    • gary4205

      Socialism is by far the greatest evil the world has ever faced.

      Over 100 MILLION were slaughtered in the 20th Century alone….in the name of Socialism.

      Hitler, Lenin, Stalin, Mussolini, Mao, and Castro were all socialists.

      Wise. Up.

      • Status

        Those names were communists, and 1 totalitarian. There is not one socialist on that list.

      • Are you living in the USA in the 70s?

      • SteersUright

        Who on earth said anything about socialism? What are you so terrified of and why so eager to spread false propaganda pushed by the Trump agenda? Hitler was a fascist, the others communists, and who on earth claims they did anything right? But surely, capitalism, another human construct, can always be improved and made more equitable for the betterment of all. When resources such as billions of dollars end up stagnating in the bank accounts of a few rather than funding cancer research, space exploration, and other such agenda, will we ever see another Einstein if he couldn’t afford to even pay his rent and took some crummy sales job to make ends meet? Surely, you’d agree there is much room for improvement. Stop being so utterly terrified of any change and instead, look around you and think of how to help others for just a few minutes of your life.

        • CarCzarDesigner

          A couple of things… You are suppose to be avoiding Politics on Car Scoops, remember?

          Secondly, Capitalism works just fine. It is not perfectly fair, but better than most. Consider what the Chinese did allowing Capitalism to flourish in their poverty entrenched society and bringing wealth & prosperity to its people.

          In the US, Politicians are primarily Lawyers that create and write the rules. Generally they write in Loopholes to benefit themselves or their allies & special interest groups. So they rigged the game. So, we don’t have a true form of Capitalism in the US. It has been argued (and I agree with) true Capitalism isn’t the ideal, either. (You didn’t mention this in your comments, so I wonder if you are aware of this.)

          Finally, you can write all the Laws you want! You can create well thought out plans on how to equitably govern societies to the benefit of all. But getting everyone on the same page and having those people abide & follow them is different story. Corruption and complacency tend to take control and they always ruin it for everyone. In conclusion, the Utopia you hope for is never going to happen.

  • F30FLORIPA

    Socialism

    • Silimarina

      And what do you propose?We should not tax the rich?

      • Finkployd

        You should make them wanna spend more by offering quality products and services instead of treating them as if it’s unfair they’re rich and ultimately chasing them away

        • Status

          And if your country is completely incapable of making quality products that the rich want, then what?

        • Silimarina

          i was talking about taxing in general.Yes it’s unfair to tax someone more just because he is richer

      • F30FLORIPA

        Taxing the supercars will not cause impact from the raining

        • Silimarina

          True, but i was referring to taxing the rich in general. I should have made my initial comment more clearer

  • psiqtas

    That Aussie “luxury cars tax” depended on fuel economy is a total BS, even more as Polish on cars with engine more than 2 liters displacement!

    • Dan

      same result every time. Bugatti will lay off factory workers after sales slow due to the tax.

      • Dan

        and tax revenue will go down as sales slow.

      • Yeah sure… because all buyers are in France, and when you buy a car that expensive, with paint options more expensive than your house, a new tax will stop you from buying it.

  • gary4205

    The USA had a “luxury tax” once. All it did was hurt middle class workers who built luxury goods.

    • SteersUright

      Just following WWII we had an income tax higher than any other nation which we used to build bridges, national park system, and employ America. The several decades the followed showed America to have the most vibrant middle class in the world and it become an economic powerhouse. In the 80’s, when greed went unchecked and everything was deregulated, monopolies were no longer outlawed, taxes on the rich were vastly lowered, the end result just 20 years laters was near financial collapse, an enormous wealth gap, failing American infrastructure, more kids on drugs than ever before, real wages stagnating and not increasing despite substantially increasing cost of living in every American city, lowest student test score averages of any nation with an underfunded education system all while the very luck few become even richer than ever before. Especially with the stock market now at unprecedented highs as they park the “printed” money they kept that was supposed to rescue ALL of us from the “Great Recession”, an event well-understood to have been brought upon by unchecked corporate greed.

      We can’t all just ride on horses around our ranches Gary, some of us must still work quite hard at jobs we dont love while we aim for a better tomorrow with no help from arrogant, wealthy individuals who’d like for nothing to change for as long as it continues to suit them. But, if one day, your elderly self finds your savings gone and in need, be sure that you too will come to appreciate a better, more equitable health care system, bridges that dont crumble under you on your way to get your endoscopy, and a society that is less hell-bent on individual wealth and more interested in a higher quality of life for everyone.

      • trentbg

        Couldn’t have said it better!

  • BGM

    *The problem with socialism is that sooner or later they run out of other people’s money*. Margaret Thatcher.

  • brn

    In France does the President, not the Parliament, determine tax law?

  • trentbg

    Good!

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