Four months before the presidential elections, Nicolas Sarkozy's government has taken the offensive in a bid to show its determination in defending jobs in France.
The project for a social VAT had been proposed years ago but been buried shortly after Sarkozy's electoral victory in May 2007. The idea is now back on the agenda and a formal proposal will be presented to the French parliament in February, Prime Minister François Fillon said today (5 January).
A tax against outsourcing?
The French government is to present a proposal for a 'social' value-added tax that it hopes will reduce labour costs and increase France's competitiveness relative to its trading partners. EurActiv France reports.
Based on reporting by EurActiv France