By Mark Baber
April 3 – The French government remains determined to fulfil its manifesto commitment to bring in a new 75% supertax, despite judicial setbacks. The supertax will apply to companies who pay salaries over €1 million, including football clubs.
Earlier this year, France’s constitutional court ruled that a proposed supertax was unconstitutional as it applied to individuals rather than households and another court ruled any rate above 66% could be rejected as confiscatory.
But socialist president Francois Hollande revived the scheme last week, saying that it would now apply to companies who will have to pay the state a sum equivalent to 75% of employees’ salaries in excess of €1 million.
On Monday, the head of the French Football Federation, Noël Le Graët (pictured), said: “The prime minister, to whom I have already asked the question, was clear: only large companies will be taxed. And professional clubs are considered as small and medium-sized businesses, so they will not be affected by the 75% tax.”
However, on Tuesday the office of Jean-Marc Ayrault, the prime minister, made clear that “The new system will apply to all businesses that pay salaries of more than €1 million [£850,000].”
In response, Frédéric Thiriez, president of the French Football League (LFP), who has waged a campaign against the supertax, warned: “This new tax will cost first division teams €182 million (£154 million). With these crazy labour costs, France will lose its best players, our clubs will see their competitiveness in Europe decline, and the government will lose its best taxpayers.”
It is believed about a dozen of PSG’s players earn over €1 million a year, including Zlatan Ibrahimovic, who is reportedly on €15 million, with a few players at other clubs also over the threshold.
Currently France’s top marginal tax rate is 49%, which kicks in at €500,000 a year.
Unsurprisingly PSG chairman Nasser al-Khelaifi told France Info radio: “I don’t think it’s good for French football, it’s not good for French clubs and it’s not good for the place of (France’s) Ligue 1 in the world.”
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