French chefs protest at VAT rates

20 February 2002 by
French chefs protest at VAT rates

Furious French chefs stormed the Arc de Triomphe in protest at high taxes and fast-food restaurants they claim are driving them out of business.

Police said that the angry chefs and restaurateurs hoisted a banner on the Paris landmark in the early hours of Tuesday morning on the fourth day of demonstrations across France.

Chefs say the 19.6% VAT on food served in sit-down restaurants is out of proportion to the 5.5% piad by take-away eateries.

A spokesman for the 80,000-member Hospitality Professions and Industries Union said: "The glorious French culinary tradition is under threat from cheap, tasteless food wrapped in polystyrene.

"Around 3,000 restaurants a year are going out of business. The entire future of our industry is at stake."

The union has called on restaurants to charge only 5.5% VAT on customers' bills in defiance of the finance ministry. Up to 10,000 across France are thought to have heeded the call and could face prosecution.

But fearful that thousands of chefs could lose future court cases, the union is also advising the protesting restaurateurs to place the unpaid 14.1% of their VAT bills into savings accounts.

Jean-Luc Germond, a chef in Lille, northern France, said he would be risking the wrath of the taxman by charging only 5.5% VAT.

He added: "If you throw chips at your customers, you pay 5.5% VAT; if you look after them, boost France's image and create jobs, you pay 19.6%. How can that be justified?

"But I believe we will have the eventual support of both President Jacques Chirac and Prime Minister Jospin because both are standing for president and will be keen to keep the electorate sweet.

"Cutting our VAT will allow restaurants to invest in better quality, hire more staff and cut prices to the customer. In France, that's a sure-fire vote-winner."

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