Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Liberia's presidential election: Results trickle in as observers give thumbs-up

Read more

THE DEBATE

France's Weinsteins: Watershed moment in fight against sexual abuse?

Read more

FOCUS

A shield and a target: France's anti-terrorism operation 'Sentinelle'

Read more

MEDIAWATCH

#MeToo and #BalanceTonPorc expose extent of sexual harassment

Read more

ENCORE!

Musical maestro Philippe Jordan on bringing passion to the Paris Opera

Read more

IN THE PAPERS

'Black day for democracy': Malta in mourning after top journalist is murdered

Read more

IN THE PAPERS

Has the Weinstein scandal 'freed' women from their silence?

Read more

THE DEBATE

Europe’s newest face: Kurz’s election win indicates rightward shift for Austria

Read more

FOCUS

Turkey's brain drain: Turning their backs on limited freedom, declining economy

Read more

France

Senate rejects move to end VAT discount for restaurants

Text by FRANCE 24

Latest update : 2009-11-24

French senators have rejected an amendment that would have forced the catering industry to bring value-added tax (VAT), currently standing at a discount rate of 5.5 percent, back to the standard rate of 19.6 percent.

France’s VAT rate on the restaurant industry will remain at 5,5% after senators rejected an amendment that proposed to bring it back to 19,6%.

Heeding the government’s call, the Senate, which is largely controlled by the ruling UMP party, rejected the amendment by 203 votes against 126. Only the opposition Socialists and a few centrists supported the amendment. 

“The (catering) industry must make an effort in terms of prices," acknowledged France's secretary of state for trade, Hervé Novelli. "But we cannot scrap a contract that has just been agreed with the industry’s trade bodies."

The Senate’s finance committee had earlier unanimously adopted an amendment in favour of restoring the VAT rate to 19,6% in cafés, brasseries and bistros. The rejected amendment was seen as a warning to members of the catering industry who have failed to keep a promise to pass the VAT cut on to customers' bills.

The French government slashed the VAT rate in July of this year after securing the industry's pledge to lower prices and hire more staff. France's catering sector has been hit hard by the economic crisis.

"Customers have not seen any real price change in restaurants", read the proposed amendment, adding that the VAT drop was “not justified in the current, difficult budgetary situation”.
 

Date created : 2009-11-24

COMMENT(S)