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France has lobbied hard to get permission for reduced sales tax on restaurants (Photo: EUobserver)

Brussels pleases France with proposal on reduced VAT

The European Commission has opted to allow reduced sales tax for housing, local restaurants and some small services in a move welcomed by France but poised to spark opposition in other countries, mainly Germany.

The proposal, unveiled by EU tax commissioner Laszlo Kovacs on Monday (7 July), enables the bloc's member states to apply lower VAT rates for some specific sectors on a permanent basis.

Up until now, national capitals could use a scheme of temporary exemptions from regular...

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France has lobbied hard to get permission for reduced sales tax on restaurants (Photo: EUobserver)

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