French VAT win on restaurant meals

The rate of VAT on restaurant meals will be cut after the French government
won a seven-year battle with the European Union.

Last week France won German approval for its proposal to slash the VAT rate
on restaurant meals, according to

Under the terms of the proposal, French President Nicolas Sarkozy would cut
VAT on restaurant meals from 19.6% to 5.5%, which equates to a £3bn cost to the

The move has been met with criticism by experts who question whether the cut
will be absorbed by restaurant owners or patrons.

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