The government of France is planning to raise the current standard VAT rate from 19% to 20 % and to increase the intermediate rate of VAT from 7% to 10% from 2014. This will increase the fiscal burden on households in France by around EUR 6bn according to some estimates.
There are also plans to reduce from 5.5 percent to 5 percent the reduced rate of VAT benefiting basic commodities with effect from January 1, 2014.
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