French 22% VAT possibility

The prospect of a 2% VAT increase in France – from 20% to 22% - has been raised by presidential-favourite Francois Fillion.

The former prime minister won last month’s Republican party nomination. He has proposed big cuts to the French corporate tax rate to help the country be globally competitive. The wealth tax would also be removed. The tax rate cut would be funded by a 2% VAT rise. France’s current VAT rate is 20%, compared to the EU average of just below 22%.

The French presidential election will take place over two votes, concluding in May 2017.

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