Phew! French restaurants spared tax hike

PARIS, Nov 8 — French food lovers and the nation's restaurant owners breathed a collective sigh of relief yesterday after Finance Minister Pierre Moscovici ruled out a doubling of the tax on eating out.

Under plans unveiled a day earlier, value added tax (VAT), on food served in bistros, cafes and restaurants would have been levied at 10 per cent from January 1, 2014, up from the current rate of seven percent.

Officials caused further dismay in the food world by refusing to rule out a move to apply the standard rate, which is going up to 20 per cent, to restaurant food.

But faced with an outcry from trade representatives who see VAT increases as destroying jobs, Moscovici yesterday insisted there were no such plans.

“The restaurant rate will be 10 per cent,” Mosovici said. “I stress 10 per cent and not 20 per cent. Nobody is looking at putting restaurant food back on the standard rate.” — AFP-Relaxnews



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