Successor of the ISF, the tax on real estate wealth (IFI) brought 2.35 billion euros to the State in 2022, nearly 164,000 declarations having been submitted that same year, said Thursday the Directorate General of Public Finances (DGFiP). While recent studies by France Strategy and the Institute for Public Policy have revived the debate on the taxation of the richest French, the amounts collected under the IFI and the number of tax returns are both on the rise. Revenue increased by €250 million compared to 2021 and by €337 million compared to 2020. In 2022, 163,900 declarations were submitted to the DGFiP under the IFI, compared to 152,700 in 2021 and 143,300 in 2020.
The increase in revenues related to the IFI is "an obvious trend given the overall enrichment of the company and the fact that real estate prices have risen," said the director of public finances Jérôme Fournel Thursday morning at a press conference. "This will probably remain true in 2023, even if the real estate market is starting to turn around," he added, stressing, however, that it was still "too early" to identify clear trends for the year 2023.
Temporary taxation of the wealthiest taxpayers
In a report published in May, France Strategy suggested introducing temporary taxation of the wealthiest taxpayers to finance the costly investments necessary for the ecological transition, a track quickly dismissed by the government. A few days later, the Institute for Public Policy had argued that in the 37,800 richest households, the tax rate was falling as their wealth increased. Bercy had then estimated that to tax the ultra-rich, "a viable solution in the long term (could) only be international". The main sources of tax revenue, income tax and corporate tax, respectively brought in €109.9 billion (+€10 billion year-on-year) and €86.8 billion (+€12.3 billion) to the State in 2022. The State collected €170.9 billion in VAT, an increase of more than €19 billion compared to 2021. The tax on digital services, sometimes nicknamed "Gafa tax" because it targets digital giants, brought in €621 million in 2022 (+€147 million year-on-year).