Soaring fuel prices: Jean Castex announces a 10% increase in the mileage allowance scale

This allowance allows people with significant transport costs in the context of their work to benefit from a tax deduction on their income tax.

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It is an additional help in the face of rising fuel prices, but it will not benefit everyone. Prime Minister Jean Castex announced on Tuesday January 25 that the mileage allowance scale would be increased by 10% “from this week”. This system allows people with high transport costs in the context of their work to deduct from income tax or taxable profit a sum determined by this scale.

The mileage scale is “a device that specifically targets those who drive as part of their professional activity”justified the Prime Minister, answering a question to the government in the National Assembly. “The effect will be quick and direct, as soon as they file their 2021 income tax return or last year’s profits”.

“The general reduction in taxation, which I hear here and there, is not the solution”estimated Jean Castex. “It is a measure that is not targeted at those who need it most, which costs billions, with the risk that it will be immediately erased if the price of a barrel rises again.” Bruno Le Maire had already ruled out a tax cut on Monday.

The scale is defined by a decree: it is this text which Jean Castex says he asked the Ministry of the Economy to modify.

However, the measure will not affect persons subject to income tax. In addition, as explained on the website of the Ministry of the Economy, a flat-rate deduction of 10% is automatically applied to the income of employees: only those who consider that their transport costs are higher have an interest in requesting the application of the mileage scale when filing their income tax return.

The president of the Rural Families association, Dominique Marmier, criticized this measure on Tuesday morning on franceinfo, deploring that it does not cover travel unrelated to work and recalling that “half of households do not pay income tax”.

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