On January 1, 2010, certain taxes will be raised

On January 1, 2010, certain taxes will be raised, new economic measures will kick in, and subsidies will be revised. Here is an overview of both good and bad fiscal surprises awaiting French citizens

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- Professional tax: This tax, paid by businesses to municipal authorities, will disappear as of January 1, 2010. In 2009, the professional tax amounted to about 50 percent of regional authorities’ revenue. Scrapping the professional tax will save businesses between six and 12 billion euros.
- Car trade-in bonus: This subsidy, which helped keep the French auto industry afloat, will be lowered from 1,000 to 700 euros on Jan.1. It will be lowered again, to 500 euros, in July.
- Motor and health insurance: In 2009, motor insurance costs barely increased and health insurance rates increased by only about three percent on average. On Jan. 1, both will go up by an approximate average of five percent.
- Ecological bonus: Sales of less polluting cars will likely stagnate since both the threshold and the sum of the ecological bonus will decrease; this environmentally correct “reward” will now be paid to those who buy cars emitting less than 125 grams of carbon dioxide per kilometre, rather than 130.
- Carbon tax: Rejected by a French governing body on Dec. 29, the carbon tax will no longer take effect on Jan.1. But a new bill on this tax, one of Sarkozy’s most fiercely defended policy proposals, is expected to be submitted to cabinet next month.