France is currently considering the idea of introducing a tax on luxury hotels. A committee considering the issue has suggested that a tax of between 2% and 6% could be imposed on hotel rooms to fund activities for young people.
The proposals are meeting resistance from the industry because the hotel sector is already facing a further rise in value-added tax (VAT). From January 1, 2014, VAT is to rise from 7% currently to 10%.
The government’s austerity plan is currently being debated in parliament.
