Huge bonuses to be taxed

LEAVING bonuses of more than €1million will be taxed from the first euro, after a vote by MPs.

An ammendment designed to crack down on parachutes dorés, huge bonuses paid to directors when they leave a company, was last night voted into the social security budget for 2009.

Such bonuses were heavily criticised by MPs in the wake of the financial crisis and President Sarkozy promised that action would be taken against them.

MPs removed a second part of the ammendment, a plan to levy a 2.5% tax on shares and stock options, after the government said that these were already heavily taxed.

Prime Transport

The National Assembly has reinstated a plan to extend the prime transport - which demands businesses in Paris pay half the travel cost of workers using public transport - to the rest of the country.

Employers will have an option as to whether to pay a sum to those who do not have access to public transport.

The amendment was also extended to cover bike hire.

A final vote on the whole of the social security budget 2009 will take place on November 4.

Photo:Afp