A 2.3 billion euro ($2.9 billion) levy on wealthy households and a 1.1 billion euro charge in one-off taxes on large banks and energy firms are central parts of an amended 2012 budget presented to parliament.

"We are in an extremely difficult economic and financial situation," Finance Minister Pierre Moscovici said Wednesday. "In 2012 and 2013, the effort will be particularly large. The wealthiest households and big companies will have to contribute."

Taxes on foreign-owned second homes in France are also to be increased as a "social charge." Tax on rental income would rise from 20 percent to 35.5 percent, and capital gains tax on property sales would rise from 19 per cent to 34.5 per cent.

The budget followed Monday's report by the state auditors warning that up to 10 billion euros of deficit cuts are needed in 2012 and a further 33 billion euros of cuts in 2013 for France to be within agreed eurozone budget limits.

About 300,000 people are likely to be affected by the one-off rise in wealth tax on households with net worth of more than 1.3 million euros.

Given the Socialist majority in parliament the amended budget could be approved before the end of the month.

jm/mz (Reuters, AFP)