CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. France's Ayrault Eyes Radical Tax Reform In 2015

France's Ayrault Eyes Radical Tax Reform In 2015

by Ulrika Lomas,, Brussels

20 November 2013

French Prime Minister Jean-Marc Ayrault has unveiled plans to radically overhaul the country's "complex" tax system in 2015. Furthermore, the Minister has confirmed the Government's intention to press ahead with plans to raise value-added tax (VAT) from January 1, 2014.

In an interview with Les Echos, Prime Minister Ayrault stressed that the time has come for a complete reform – "in full transparency" – of the tax system, while nevertheless maintaining compulsory levies at a constant level.

Insisting that the French tax system has simply become "very complex, almost unreadable," Prime Minister Ayrault argued that individuals very often fail to understand its logic, or are not convinced that what they are paying is fair.

Maintaining that the envisaged tax reform will be prepared within a spirit of dialogue and confidence, Ayrault underlined the need to have both "the courage and lucidity" to start again. Prime Minister Ayrault explained that the aim of the tax reform is to ensure justice, efficiency, and clarity. Taxation has to support the creation of lasting wealth, the Minister stressed. In addition, Ayrault revealed that plans to merge income tax and the general social contribution (CSG) will form part of the debate.

Emphasizing the importance of a profound dialogue, Prime Minister Ayrault alluded to plans to meet the country's social partners in the coming days and made clear that lawmakers will also be included in the discussions. At the end of the consultation process, the Government aims to submit its tax reform proposals to parliament within the framework of the 2015 Budget, Ayrault said.

Defiantly defending the Government's intention to raise VAT for certain sectors from January next year, the Prime Minister warned that to renege on such a decision would be to u-turn on plans to lower the lost of labor. This is simply out of the question, Ayrault added, pointing out that the moderate VAT rise was agreed a year ago. The measure is designed to finance the Government's CICE competitiveness and employment tax credit, and to reduce the cost of labor by EUR20bn (USD27bn), Ayrault continued, underlining that all companies, even small enterprises, will benefit from the tax break.

TAGS: individuals | tax | value added tax (VAT) | law | corporation tax | France | tax reform | individual income tax | European Union (EU) | Europe | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »