Prime Minister Manuel Valls has announced on Friday that 1.8 million of the poorest households in France need not pay their income tax for the year 2013 in the coming September tax deadline.

Aside from those totally exempted from income tax, Valls said that an additional 1.2 million lower income households will get a tax cut for their 2013 income tax.

The good news comes after the government vowed to strengthen its commitment to alleviate the most hard-up citizens in France at a time of rising unemployment and economic gloom. The tax cuts amounting to €1b will be shouldered by the state and will be included in the finance bill to be submitted to parliament in June.

Those who will benefit from the exemption include:

• Single people earning the minimum wage or around €14,000 a year
• Couples with two children earning a combined salary of around €3,600 a month

Those who will benefit from the tax cuts will save €300 annually (single) or €750 annually (couples).

The Socialist government headed by President François Hollande has been falling in popularity because of growing fiscal problems, and the exemptions were seen as electioneering tactics ahead of the coming EU Parliamentary Elections.

But the prime minister denied the accusation and said ‘This is not just a gesture, this is a strategic measure to give back some purchasing power to our compatriots.’