French Employers Slam Paris Transport Taxes

by Ulrika Lomas, Tax-News.com, Brussels

26 November 2010

French employers’ federation Medef IDF has denounced the various fiscal measures contained in the country’s 2010 supplementary finance bill, providing for a significant increase in compulsory levies imposed on companies in the Ile-de-France region in order to finance the Greater Paris future transport network. The federation maintains that under the current plans, more than EUR500m in new taxes will be borne by companies in the area.

According to the federation, the tax burden on companies will increase by significant proportions as a result of plans to impose differentiated local tax rates on office, commercial and storage premises in the area, including parking space. Given that the tax is specific to the Ile-de-France area, Medef IDF argues that it will merely serve to harm both the attractiveness and competitiveness of the region. The increase could be as much as 40% overall, it warns.

Other proposals contained in the bill include plans to create a special tax on equipment, amounting to a total of EUR117m a year, and divided among all taxpayers in the area, including companies.

While acknowledging the fact that improving the public transport network is vital for the economic development of the area, Medef IDF has denounced the lack of investment in the region, and called for other solutions to the financing issue to be explored, such as public private partnerships, instead of merely electing to increase the tax burden.

France’s 2010 supplementary finance bill was presented recently to the Council of Ministers.

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