Tax rises ruled out by French PM
Thursday April 23, 2009
The prime minister of France has spoken out and dismissed the possibility of VAT rises, it has been reported.
Francois Fillon has hit out at suggestions the French government was toying with the idea of increasing taxes in order to combat a predicted slow recovery in the country’s economy in 2010, reports Tax-News.com.
He claims an increased level of taxation in France would "not serve to boost growth" in the economy, but may "exacerbate the financial crisis and prevent economic recovery".
Mr Fillon did however outline plans to introduce a "confiscatory" tax in final salary pensions which are enhanced for some senior company managers, particularly in the banking sector.
He described this practise as "unacceptable" and added the possibility of the tax will be examined in time for the next Budget.
It was recently reported the new prime minister for Hungary, Gordon Bajnai, will reveal a four-point increase in VAT, which would see levels hit 24 per cent in July.