VAT drop essential for restaurants

THE NATIONAL restaurant and hotel union Umih says a drop in VAT to 5.5% is “a question of survival” for the industry.

Umih president Christine Pujol said: “Only a charge of VAT at 5.5% will enable restaurants to survive.

“An immediate decision will give us the possibility to actively participate in relaunching the French economy.”

Both German and French governments want to drop the level of taxation on restaurants but need the agreement of all 27 members of the EU in order to carry out the measure.

While all member nations must vote to reduce TVA in a certain sector, individual governments can choose the level.

Ecofin – the council of European finance ministers will meet today to discuss the issue.

A statement by the Umih said it was “confident” France could get an agreement and would be pressing for a drop from the current 19.6% to 5.5%.