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French budget minister rules out 2012 VAT rise
July 2, 2012 / 1:38 PM / 5 years ago

French budget minister rules out 2012 VAT rise

PARIS, July 2 (Reuters) - France’s revised 2012 budget, due to go before the cabinet on Wednesday, does not include any increase in value-added tax as part of a raft of measures to plug a shortfall in government revenues, Budget Minister Jerome Cahuzac said on Monday.

“The draft revised (2012) budget does not foresee any increase in VAT. On the contrary we are repealing the VAT increase planned by the previous government: that’s to say we are giving back 11 billion euros the budget expected to take from consumers’ pockets,” Cahuzac told reporters.

France’s state auditor on Monday urged the government to consider an increase in broad-based taxes such as VAT in order to help it find more than 33 billion euros in budget savings needed to reach a 3 percent deficit target next year.

Asked if there would be a VAT increase in 2013, Cahuzac replied: “In principle, that was not - if I remember correctly - in the campaign programme of (president) Francois Hollande.”

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