French President Emmanuel Macron spells out his election polices in Aubervilliers, Paris, on March 17. AFP
French President Emmanuel Macron spells out his election polices in Aubervilliers, Paris, on March 17. AFP
French President Emmanuel Macron spells out his election polices in Aubervilliers, Paris, on March 17. AFP
French President Emmanuel Macron spells out his election polices in Aubervilliers, Paris, on March 17. AFP

France's Macron pledges tax cuts and benefits shake-up in election policies


Soraya Ebrahimi
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French President Emmanuel Macron pledged further tax cuts, reforms to the welfare system and major public investments on Thursday, as he unveiled his policies less than a month before elections.

Mr Macron, 44, delayed confirming his intention to seek a second term until March 3, and he has been at the heart of western diplomatic efforts to halt Russia's invasion of Ukraine.

Speaking for four hours at his first major campaign event, he announced a programme aimed at deepening pro-business reforms started in 2017 to reduce chronically high unemployment.

"We have to work more," Mr Macron said at a venue in a northern Paris suburb, in front of giant screens showing his slogan, "With You".

"We have two levers, full employment and reforming the pension system."

He acknowledged that he had been unable to push through the pension overhaul as promised in 2017, but pledged to tackle it again and push back the retirement age to 65 from 62.

Mr Macron also proposed reforms to the benefits system that would require the unemployed to undertake 15 to 20 hours of work or training each week.

Another politically risky change would see all social benefits — for unemployment, housing, or childcare — centralised in a single system, affecting up to 20 million French people.

Major new public investments in the military, the energy sector and new technology were also required to create "an independent France in a strong Europe", Mr Macron said.

The programme "has been informed by the crises we've experienced in the last five years, which we weren't expecting," he said.

He was referring to the "Yellow Vest" anti-government protests from 2018, the Covid-19 crisis and the war in Ukraine.

  • Russian President Vladimir Putin, left, and French President Emmanuel Macron meet in the Kremlin in Moscow. EPA
    Russian President Vladimir Putin, left, and French President Emmanuel Macron meet in the Kremlin in Moscow. EPA
  • Mr Macron at a joint news conference with Mr Putin after five hours of talks. AP
    Mr Macron at a joint news conference with Mr Putin after five hours of talks. AP
  • Mr Putin said proposals put forward by the French leader during their discussion could form a basis for moving forwards. The crisis was sparked by Russia's massing of troops on its border with Ukraine. EPA
    Mr Putin said proposals put forward by the French leader during their discussion could form a basis for moving forwards. The crisis was sparked by Russia's massing of troops on its border with Ukraine. EPA
  • Mr Putin denied that Russia was acting aggressively towards Ukraine or the West. Reuters
    Mr Putin denied that Russia was acting aggressively towards Ukraine or the West. Reuters
  • The Russian leader said Ukrainian authorities were to blame for the conflict in the east of the former Soviet state. Reuters
    The Russian leader said Ukrainian authorities were to blame for the conflict in the east of the former Soviet state. Reuters
  • Mr Macron said the discussion could "make a start in the direction in which we need to go, which is towards a de-escalation". AFP
    Mr Macron said the discussion could "make a start in the direction in which we need to go, which is towards a de-escalation". AFP
  • Mr Macron also travelled to Kiev to meet Ukrainian President Volodymyr Zelensky, left. AFP
    Mr Macron also travelled to Kiev to meet Ukrainian President Volodymyr Zelensky, left. AFP
  • Mr Macron at a joint press conference with his Ukrainian counterpart following their meeting. EPA
    Mr Macron at a joint press conference with his Ukrainian counterpart following their meeting. EPA

Rivals across the political spectrum who have struggled to make an impact as Russia's invasion of Ukraine has dominated headlines, have accused Mr Macron of neglecting the election campaign until now.

He has held 20 hours of talks with Russian leader Vladimir Putin in the past five weeks.

"The president wants to be re-elected without ever really having been a candidate, without a campaign, without a debate, without a competition of ideas," the head of the Senate, Gerard Larcher, told Le Figaro newspaper on Tuesday.

"If there isn't a campaign, then there will be questions about the legitimacy of the winner."

Mr Larcher is from the opposition Republicans party.

Mr Macron has gained five to six points in the latest voter surveys over the past month and could be on course to win the first round of the election on April 10 with a score of about 30 per cent.

Veteran far-right leader Marine Le Pen is running in second place, on about 18 per cent, a poll of polls by the Politico website suggests.

She is trailed by three candidates at about 11 to 12 per cent — right-wing challenger Valerie Pecresse, far-right former TV pundit Eric Zemmour, and hard-left campaigner Jean-Luc Melenchon, who appears to be gaining momentum.

The top two candidates in the first round will progress to a run-off vote on April 24.

Polls suggest Mr Macron will win by a large margin irrespective of his rival.

  • Sheikh Mohamed bin Zayed, Crown Prince and Deputy Supreme Commander of the Armed Forces, is received by French President Emmanuel Macron at Fontainebleau Palace, near Paris. Photos: Ministry of Presidential Affairs
    Sheikh Mohamed bin Zayed, Crown Prince and Deputy Supreme Commander of the Armed Forces, is received by French President Emmanuel Macron at Fontainebleau Palace, near Paris. Photos: Ministry of Presidential Affairs
  • Sheikh Mohamed held talks with the French President on Wednesday.
    Sheikh Mohamed held talks with the French President on Wednesday.
  • The two men spoke about their countries' close ties and opportunities for future development, state news agency Wam reported.
    The two men spoke about their countries' close ties and opportunities for future development, state news agency Wam reported.
  • Sheikh Mohamed conveyed to Mr Macron greetings from the President, Sheikh Khalifa.
    Sheikh Mohamed conveyed to Mr Macron greetings from the President, Sheikh Khalifa.
  • President Macron accompanied Sheikh Mohamed on a tour of Sheikh Khalifa bin Zayed Al Nahyan Theatre, at Fontainebleau Palace.
    President Macron accompanied Sheikh Mohamed on a tour of Sheikh Khalifa bin Zayed Al Nahyan Theatre, at Fontainebleau Palace.
  • Sheikh Mohamed and President Macron pose for a photograph wearing Expo 2020 Dubai wristbands.
    Sheikh Mohamed and President Macron pose for a photograph wearing Expo 2020 Dubai wristbands.
  • Sheikh Mohamed is received by President Macron at the palace.
    Sheikh Mohamed is received by President Macron at the palace.
  • Sheikh Mohamed is received by President Macron at the palace.
    Sheikh Mohamed is received by President Macron at the palace.
  • Sheikh Mohamed is received by President Macron, third from left, at the palace. To their left is Ali bin Hammad Al Shamsi, Deputy Secretary General of the UAE Supreme National Security Council.
    Sheikh Mohamed is received by President Macron, third from left, at the palace. To their left is Ali bin Hammad Al Shamsi, Deputy Secretary General of the UAE Supreme National Security Council.
  • President Macron receives Khaldoon Al Mubarak, chief executive and managing director of Mubadala, chairman of Abu Dhabi Executive Affairs Authority and Abu Dhabi Executive Council member. They are with Sheikh Mohamed bin Zayed.
    President Macron receives Khaldoon Al Mubarak, chief executive and managing director of Mubadala, chairman of Abu Dhabi Executive Affairs Authority and Abu Dhabi Executive Council member. They are with Sheikh Mohamed bin Zayed.
  • Hend Al Otaiba, UAE Ambassador to France, greets President Macron at Fontainebleau Palace as Sheikh Mohamed bin Zayed looks on.
    Hend Al Otaiba, UAE Ambassador to France, greets President Macron at Fontainebleau Palace as Sheikh Mohamed bin Zayed looks on.
  • Sheikh Mohammed bin Hamad bin Tahnoon, Chairman of Abu Dhabi Airports, greets President Macron as Sheikh Mohamed bin Zayed looks on.
    Sheikh Mohammed bin Hamad bin Tahnoon, Chairman of Abu Dhabi Airports, greets President Macron as Sheikh Mohamed bin Zayed looks on.
  • A fond farewell.
    A fond farewell.

Behind the scenes, the president is reported to be urging ministers and campaign workers to guard against premature optimism, but to limited effect.

"Macron is winning by default. It's the others who are useless," one senior supporter told AFP this week.

Mr Macron remains a highly divisive figure, called the "president of the rich" by left-wing critics and criticised for his at-times abrasive personality.

Many of his proposed reforms will be subject to debate with stakeholders, he said, such as changes that would introduce more autonomy for schools and wage differences between teachers.

"'With you' is not just a slogan, it will be for me a new democratic way of working," Mr Macron said.

He also stressed his difference from the nationalist policies of Ms Le Pen, and Mr Zemmour, without naming them.

"There are programmes that propose a withdrawal, a return of a certain type of nostalgia, a nostalgia for something that never really existed," Mr Macron said.

"I believe, on the contrary, that faced with fears and a return of the tragic in our history, the war and the crises ... we need to reply with clear-sighted ambition, a desire to act."

MATCH INFO

Manchester United 6 (McTominay 2', 3'; Fernandes 20', 70' pen; Lindelof 37'; James 65')

Leeds United 2 (Cooper 41'; Dallas 73')

Man of the match: Scott McTominay (Manchester United)

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: March 18, 2022, 12:11 AM