June 1, 2023

Taxation: the government will revalue the mileage allowance scale

The gesture could benefit more than two million French people who use their car for professional purposes. On Wednesday evening, Gabriel Attal announced that the government would increase the mileage allowance scale by 5.4%.

Guest of “C to You” on France 5, the Minister Delegate for Public Accounts spoke of the exceptional nature of this tax measure.

Target the middle class

The revaluation, which relates to the income of 2022, “can represent more than 100 euros for a single person who earns 2,900 euros”, specified, for his part, Bercy to AFP. It represents a cost for the State of 140 million euros. And targets the middle class.

“I think that our action must be directed above all towards these French people, this middle class who work, who have the feeling that they are always asked for more, either for others who cannot work, or for services which are deteriorating while it is financed by their taxes”, declared Gabriel Attal.

Real costs

This scale had already been raised by 10% in January 2022. The boost is aimed at employees who opt to have their actual travel expenses deducted from their taxable income (instead of the allowance), such as fuel expenses, insurance premiums or maintenance costs.

To counter the inflation that eats into purchasing power, the government had already introduced in January a fuel allowance of 100 euros for the 10 million poorest tax households using their car to go to work. This aid took over from the general rebate at the pump which ended on December 31, 2022.

(With AFP)

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