French Parliament have adopted austerity measures which will take effect in January 2012 increasing the current rate of TVA to 7% and as a consequence the cost of many consumer goods and services nationwide. Coupled with a rise in gas and transport costs, this could be a tough year for French households.
Basic comestibles such as water, fruit and veg and some non-alcoholic beverages will remain at 5.5%. Luxury goods such as caviar will continue to attract 19.6% sales tax whilst chocolate an foie gras will retain their current 5.5% status as a basic food item.
Households can expect to pay on average an extra 4.4% on their gas bills this winter, the government have indicated that electricity prices will not be affected.
France's largest union the CGT has called for members to strike nationwide on the 18th of January in protest of current austerity measures.
If I've followed the news correctly, the TVA on a baguette will stay at 5.5%, but a 'sandwich jambon' and suchlike, made with the same baguette, will go up to 7%. More fuss and admin for a boulangerie that also sells 'sandwiches'..... Trust the French.....
I am calling an SFN strike of 18th January as well, all out brothers and sisters! At least they haven't put up the foie gras and had they put up chocolate I'd be out already... Caviar, well we'll just have to go without for a day or two won't we folk?
Okay, so what items have actually increased to 7%. We run a B&B and are TVA registered. Currently the laundry/service side is charged at 19.6% and the breakfast part at 5.5%. Also tables d'hotes and restaurant tva was lowered to 5.5% a few years back from 19.6% so is this now still 5.5% or gone up to 7%. We buy in food from the supermarkets at 5.5% still?
It is funny how they regard foie gras as a basic food item. I must stop shoping at lidls I guess. So what sort of things are going to attract the 7% I for some reason thought everything was at 19.6% apart from certain renovation works.