François Olland dreams to enter the VAT for objects of luxury

27.04.2012 The most probable candidate for presidential post of France, François Olland, adhering to left-wing views, suggested to enter in France unprecedented high VAT for objects of luxury at a rate of 33 %. However, he expressed doubts that the European commission will allow France to resort to similar measures.

Let's notice that the European instruction on a value added tax, left in 1992, allows to raise to the states of uniform Europe the VAT within a normal rate in 15 % and on one or to two preferential rates, it is not less than 5 % and only in the relation of «the limited list» goods and services. However in France there is the VAT rate at a rate of 19,6 %, and there are also preferential rates in 5 and 7 %. Besides the heads of the participating countries of the European Union already discussed the possibility of VAT in the rate of 25 %, but these discussions didn't lead to any result.

It is expected that in case François Olland becomes a president, he can find ways to bypass inconvenient norm. Having laid down the aim to enter the "extreme" VAT, it will reach it by means of the excises similar to excises on alcohol and tobacco. To wait for news remained not for long: France will make the choice on May 6.

Expert’s opinion

« In Russia an election of the president already passed, there were many promises, including in the field of the taxation. And, as we already wrote, there were conversations on introduction of a so-called tax on the luxury, differently a called tax on rich. However all these conversations simply grow dim in comparison with that suggested to enter in France.

Undoubtedly, François Olland is interesting by rather unexpected election pledge to enter in France is unprecedented the high VAT for objects of luxury at a rate of 33 %. In one of the performances the candidate for president told: «The excessive wealth is unacceptable for me».

Well, we will look, as this statement will be reflected in François Olland's pre-election policy. For now it is necessary to ask only one question, why those who work, should work, but not earn.»

On the basis: http://www.gouvernement.fr/

Lomakina Irina ( the director of Moscow office of Honest & Bright)