Low incomes to benefit most from tax shift
As a result of the shift in taxation from labour to other sources, those on low incomes will see their net salaries rise by 10% over the next 5 years. Income tax will fall considerable, even when compared to other European countries.
Deloitte’s Patrick Derthoo told journalists that "We will finish in the top 5 when it comes to working couples with two children. We will also move up a few place when it comes to low taxation levels for single people too.”
Higher earns will sees their net incomes rise relatively less than those on more modest incomes. There will also remain among the most highly taxed employees in Europe.
However, the Deloitte doesn’t take into account new taxes or increased taxation (e.g. higher duty on drink and tobacco products) and cuts in subsidies that may result in price rises to services. This means that the survey gives no indication of future purchasing power.