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. French Court Clears Soda Tax, VAT Hike

French Court Clears Soda Tax, VAT Hike

by Ulrika Lomas, Tax-News.com, Brussels

30 December 2011


The French government has received approval from the nation's Constitutional Court to forge ahead with plans to introduce a tax on sugary beverages, and to increase the concessionary value-added tax rate currently in place on some services sectors.

The Court on December 28, 2011, cleared plans for the country to introduce a tax of EUR1 per can of drink with a high sugar content, a decision which has triggered Coca Cola to pull future investment in protest. The tax is expected to contribute around EUR120m (USD155m) annually towards government debt-reduction efforts.

In a second decision, the government also received approval to hike its concessionary value-added tax rate - 5.5% since mid-2009 - introduced to support hoteliers and restaurateurs. Under government austerity plans, this rate is poised to rise to 7% to assuage markets' concerns that the nation's credit rating will be downgraded.

TAGS: court | tax | business | value added tax (VAT) | fiscal policy | law | travel and tourism | food | tax reform | retail | services

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 Tax-News.com 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 »