France to propose higher tax on Internet services

8th September 2010, Comments 0 comments

The French economy ministry is to recommend that the sales tax on devices bundling Internet, television and telephone services be raised to 19.6 percent, Budget Minister Francois Baroin has said.

"The demands from Brussels mean that we have to raise this tax," Baroin said in an interview due to appear in French business daily Les Echos on Thursday.

An economy ministry source told AFP earlier that the proposal would be submitted to President Nicolas Sarkozy "in the coming days" and that the tax could earn the state "several hundred million euros" in revenue.

The ministry also wants to apply the 19.6 percent tax to mobile telephone operators who benefit from the reduced rate on grounds that television programmes can sometimes be viewed on mobile phones, the source said.

The French government is looking for nearly four billion euros (five billion dollars) in its 2011 budget to reduce its deficit.

© 2010 AFP

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