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Debate on Local Taxation Heats Up as Minister Proposes New Citizen Contribution

French Minister Catherine Vautrin has sparked discussion among local officials over the impact of abolishing the housing tax, which has led to budget woes for municipalities. While she firmly stated there will be no reinstatement of the tax, Vautrin is open to exploring a new ‘citizen contribution’ model proposed by the Association of French Mayors. This initiative aims to ensure all residents can contribute to local public services without increasing overall tax burdens. The minister plans to engage in consultations with local leaders starting in 2025 to discuss potential alternatives for funding local governments.

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