Restaurant vat cut should be scrapped

61% OF PEOPLE IN A SURVEY ARE IN FAVOUR OF THE €3BN TAX BREAK FOR RESTAURANTS BEING TAKEN AWAY ALMOST two thirds of French people want restaurants to lose the right to charge a specially

discounted VAT rate, a new survey has revealed. The BVA poll for _La Tribune_ and BFM radio found 61% of people disapproved of the €3bn tax break, which has allowed restaurateurs to pay 5.5%

VAT instead of 19.6% since last July but has had little effect on the prices paid by consumers. According to restaurant union Synhorcat, prices have fallen by 1.7% since the VAT cut came

into force on July 1 last year. The group says 5,700 extra jobs have been created and starting salaries are up 25%. However the government had given restaurants a target of a 3% price drop

and 20,000 jobs within the first year. The VAT discount came top in the BVA poll of tax breaks that should be dropped. Overall, 55% of people surveyed said they supported the government

getting rid of a number of tax avoidance schemes to improve its financial situation. The only tax break that the majority of respondents were eager to keep was the 10% flat-rate deduction

applied to income when filling out a tax return. The French national audit office, the _Cour des Comptes_ said in its annual report earlier this year that the government offered too many tax

discounts and exemptions, totalling €70bn a year, without finding a way of making up the lost revenue. RELATED STORIES: €70bn lost in tax exemptions 'VAT cut has saved

restaurants' Restaurants sign VAT-cut pay deal