French art world slams proposal for new art tax

"The proposal involves the tax on Immovable Property law (IFI, impôt sur la fortune immobilière) being turned into a tax on "unproductive wealth", which would cover works of art. The change was put forward by Jean-Paul Matteï of the Democratic Movement party and Philippe Brun of the Socialist party and approved by MPs on 31 October. The bill is due to go before the French senate on 24 November and then be examined by a joint parliamentary committee before returning to the National Assembly."

"The joint statement, which has 127 signatories, says: "While France is gradually catching up with London in the post-Brexit system, a tax on the ownership of artworks would lead collectors to organise their transactions, storage, and conservation facilities in Switzerland, the United States or the United Kingdom." Other signatories of the statement include the visual artist rights organisation ADAGP and the Association for the International Diffusion of French Art (ADIAF)."

"Mathias Ary Jan, the president of the Syndicat des négociants en art, an association representing galleries and dealers, told La Gazette Drouot that "the consequences would be disastrous: a definite flight of works of art and heritage from [France]." The CPGA says online that it is immediately "mobilising to defend the tax exemption for works of art and the stability of the French market"."

A legislative proposal would expand the IFI (impôt sur la fortune immobilière) into a tax on "unproductive wealth" that explicitly includes works of art. The bill was introduced by Jean-Paul Matteï and Philippe Brun, approved by MPs, and is scheduled for the French senate before joint committee review and return to the National Assembly. Major galleries, dealers, artist-rights organisations and fairs have mobilised against the change and warned that a tax on art ownership would prompt collectors to move transactions, storage and conservation abroad, undermining the French market and heritage.

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