On the 1st of January, the government has increased the full rate of VAT from 19.6% to 20% and the middle rate (which relates to the transport and hospitality in particular) of 7% to 10%.
It is used to finance the CICE, the tax credit competitiveness employment, which will reduce burdens on businesses to 10 billion euros in 2014 and $ 20 billion per year from 2015.
At Reims, some traders have already planned to pass this increase on prices. Reporting Martin Bourdin :
A guest on France Bleu Champagne-Ardenne at 8.10 am was François Béguin, the president in the Ardennes of the Umih, the union of the trades of the hospitality industry :
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