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France To Advance €5.5B In Household Tax Breaks As Stimulus

By Joseph Boris · January 11, 2021, 6:36 PM EST

France this week will supply €5.5 billion ($6.7 billion) in credits and reductions in advance of households' 2020 taxes as a means of stimulating the pandemic-racked national economy, two top government officials said Monday.

Economy Minister Bruno Le Maire and Deputy Minister for Public Accounts Olivier Dussopt said in a statement that the advance will take place Friday. The move "will help preserve French people's purchasing power, particularly during the health crisis," with an average of €640 per affected household.

Certain tax credits and reductions will be paid directly into over 8.5 million bank accounts, the ministers said. Eligible tax breaks are mainly for donations, spending on home employment, child care, stays in assisted-living facilities, union dues and residential investments.

About 260,000 households for which France's tax authority has no bank information will have to wait until they file their 2020 taxes. These taxpayers will receive their advance in the form of a check by Jan. 31.

The advance will boost domestic employment by accelerating job-related tax credits, the ministers' statement said.

--Editing by Vincent Sherry. 

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