Thursday, 2nd July 2009

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 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.