Owners of second homes in some popular areas of France could become liable for an additional 20% tax.
The new levy could be applied to some 30 areas of the nation where housing is in short supply if the proposals within a supplementary budget for 2014 are accepted.
Michel Sapin, the finance minister, confirmed French media reports that the surcharge was to be put forward. He said the objected is to “unblock housing” where there are housing shortages.
But some ministers have expressed unease about the proposal because President Hollande had promised not to introduce more new tax rises.
The “taxe habitation” is similar to the UK’s council tax and is based on a percentage of the property’s rental value.
In this instance, the intention is to charge the tax only on unoccupied houses and not where properties have tenants.
The town hall of Paris welcomed the proposal. Nearly 25% of housing in some districts of the capital are second homes.
"Nobody can accept that we have 80,000 second homes sometimes only occupied a week per year while Parisians suffer from a housing shortage," said Ian Brossat, deputy mayor in charge of housing.
