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Childless couples with an after-tax income of less than €43,000 a year will be exempt from taxe d'habitation within three years, the government has announced.

Meanwhile, couples who have one child and a post-tax income of less than €49,000 will also be exempted from the tax, which has been branded 'unfair' by Prime Minister Edouard Philippe. Exemptions are further scaled up for families with more children.

A single person whose income is under €27,000 after tax will also no longer have to pay, according to figures released by Public Accounts Minister Gérald Darmanin this week.

Mr Philippe said at the end of last month that 30% of people living in France will be exempt from the tax in 2018, as the government moves to abolish it for 80% of the population by 2020.advertisement

"Council tax is a bad tax, an unfair tax, the basis for which was set in the 1970s without taking into account the development of towns, or areas. Our objective is to reflect on how to have a more intelligent local tax system," he said.

Those who will still pay taxe d'habitation will see reductions over the next three years as the ministry seeks to review the entire subject of the financing of local government.

Local authorities, however, have expressed concern that cutting taxe d'habitation will force them to reduce amenities. Currently, it provides 36% of communes' taxable income. But President Macron has promised that state funds will cover the loss to the nearest euro.advertisement