PARIS A GOVERNMENT-COMMISSIONED report will urge France to cut €30 billion euros ($39.09 billion) in payroll taxes over two to three years to increase the country’s competitiveness, newspaper Le Figaro said on its website on Friday citing unnamed sources. The lost revenue would have to be covered by massive cuts in public spending - far beyond the €10 billion savings envisaged in the 2013 budget - as well as rises in VAT and the CSG levy that helps to fund France’s social security system, the newspaper said. The report by Louis Gallois, former chief of aerospace group EADS, will say the sharp reduction in labour costs would give a necessary jolt to France’s economy, according to Le Figaro. French business leaders have long called for a decrease in payroll taxes, which rank amongst the highest in the world. Gallois’ report on French competitiveness, which was commissioned by Hollande, s due out on November 5
Govt panel to urge France to cut $39bn in payroll taxes
REUTERS
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