France to introduce restaurant VAT cut
Tuesday April 28, 2009
Ministers in France have been discussing cutting VAT in the restaurant industry, according to reports.
From July, diners in the country could benefit from cheaper costs of eating out if ministers and restaurant industry chiefs agree to reduce VAT for customers from 19.6 per cent to 5.5 per cent.
The cost of a typical ‘plat du jour’ will drop by ten per cent and a list of a dozen "everyday items" set to benefit will be produced by trade officials.
Agreement was secured with the European Union for the VAT drop after Germany agreed to end a seven-year veto against the scheme, which had originally been proposed by President Chirac.
Herve Novelli, trade minister for France, said: "A customer should be able to order a meal entirely subject to the full VAT reduction."
Prime minister of France Francois Fillion recently dismissed the possibility of increasing VAT and other taxation in the future.
It was suggested that tax rises could be used to combat a predicted slow recovery in the country’s economy during 2010, according to Tax-News.com.