France slashes restaurant VAT

French Junior Labour Minister Laurent Wauquiez (left) with Industry Minister Christian Estrosi, Economy Minister Christine Lagarde and Public Finances Minister Eric Woerth in a Paris cafe yesterday. The government has slashed VAT for the restaurant...

French Junior Labour Minister Laurent Wauquiez (left) with Industry Minister Christian Estrosi, Economy Minister Christine Lagarde and Public Finances Minister Eric Woerth in a Paris cafe yesterday. The government has slashed VAT for the restaurant business from 19.6 per cent to 5.5 per cent, costing the state €2.38 billion a year but owners have undertaken to employ 40,000 more people. Malta's MHRA has since March been lobbying the government to introduce a similar VAT cut locally. However, the government has ruled out such a reduction before the next budget which should be presented around November.

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