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France: Extra tax dropped
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On top of tax, French hoteliers face a VAT rise
10.11.2011
Paris. French hoteliers were frustrated after Sarkozy’s government applied earlier this month a new 2% tax on overnights above 200 Euro. But furious they are since Monday after French Prime Minister, Francois Fillon, announced plans to increase the reduced VAT rate from 5.5% to 7%, effective from January 2012. In contrast, the Swiss would like to cease theVAT for one year.