The French President announced on January 3, 2012 that his government will hike value-added tax before the upcoming elections, to allow for a reduction in social security contributions paid by companies.
The tax measures would be in place before April 2012, with details of new tax rates expected in the coming weeks.
France currently has various rates of value-added tax, with the standard rate set at 19.6%. The government earlier announced that the concessionary rate, applicable to certain services industries such as hoteliers and restaurateurs, will be hiked from 5.5% to 7% as part of government austerity plans.
