The March 2023 tripartite meeting produced a number of benefits for workers and pensioners. These include lower taxes thanks to a business tax credit and the adjustment of the tax scale. However, another less discussed aid is also in the pipeline: the CO2 tax credit.
From 1 January 2024 onward, this aid will “offset the cost of the CO2 tax for the lowest salaries”, explained government officials a the time negotiations.
According to the respective legal text, the CO2 tax credit will be €12 per month for all those whose annual income does not exceed €40,000. This will equal a reduction of €144 a year for employees, pensioners, and the self-employed.
According to calculations by the Chamber of Commerce, an employee earning €60,000 gross per year, or €5,000 gross per month, will be entitled to a €6 CO2 credit each month. The credit will not be granted to people earning a gross salary of more than €79,999 a year.
Intended to boost purchasing power, the CO2 tax credit will nevertheless be limited by the reduction in the amount of the employee tax credit at the start of 2024 (-€8 per month for an employee earning the qualified social minimum wage). It will also be limited by the increase in the CO2 tax on 1 January, which will rise from €30 to €35 per tonne of carbon.
The legal text also includes the business tax credit and has progressed in the Chamber of Deputies. It is thus due to be voted on before summer, which means that your taxes will soon be lower.
