The French government is considering almost halving the amount of VAT on public transport. French financial daily newspaper Les Échos says that draft legislation to cut the current rate of VAT for bus, metro and rail services from 10 to 5.5 per cent could be included in September’s Finance Act.
A return to a VAT rate of 5.5 per cent would cancel the increases performed in 2012 and 2014.
Although the measure could cost between EUR 300 – 500million a year, promoting public transport over the use of private cars in this way would be a strong gesture by the French government three months before the 2015 Paris Climate Conference.
Although there is no guarantee that the VAT reduction would result in lower tariffs, Les Échos informs that the measure will also show that the French government is acting to improve the purchasing power of French citizens, particularly the most disadvantaged.
Share on:
