VAT rise ‘not on the agenda, “says Matignon – Echoes

VAT rise 'not on the agenda, "says Matignon – Echoes

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An increase in the standard rate of VAT beyond the current 20% is “not in the agenda,” said Tuesday Matignon after a release of information suggesting such a project. “By definition, the services of Bercy investigating all possible leads. This is not the agenda, “said the Prime Minister Manuel Valls French, in full formation of the new government.

According to Libération, which s relies on an inter-document, the government is considering such a solution to bridge the shortfall in state coffers, with an increase in the main rate of VAT that would glean € 15 billion in tax revenue. These 15 billion, according to the document cited by Libération, would be shared “between supporting investment and deficit reduction” budget.

According to the daily, this issue has been discussed by Francois Hollande, and Manuel Valls August 15 and August 19 in a non listed on the official agenda between the two men and their ministers Michel Sapin, Arnaud Montebourg, Christian Eckert, Marisol Touraine and François Rebsamen meeting. The document refers to other measures, such as non-implementation of the measures of the Alur Housing Act brought by the former Minister Cécile Duflot, or the liberalization of Sunday work and “some measures on the labor market . “

According to Libération, insists Matignon in this document to” the need to do more structural reforms “and also calls for” the maximum “by orders. There is also mention of questions about the “absolutely required” of the law of multi-year public finances, while France is expected to miss its deficit targets for 2014 and 2015.

Finally, according to Liberation, an” assessment “of competitive employment tax credit (ICCC) has been requested by the president, who wants to know why only including € 4 billion was paid to date on 10bn expected. Matignon has not expressed immediately on these other measures, stressing that “the time (was) the composition of the government.”

Source AFP