In a move that is expected to provide more economic tourism stimulus, the French government radically cut the Value Added Tax (VAT) from radical Value Added Tax (VAT) cut from 19.6 per cent to 5.5 per cent in restaurants and cafés effective July 1.
The government’s move will be greatly welcomed by skiers look for more affordable options when heading to the Alps during the upcoming ski season, says a French travel agency.

In the 2008/2009 season, French mountain resorts came under fire for their inflated prices, but it is hoped that this recent action by the French government will allow restaurateurs to reduce prices for the coming season,”said a P&V statement.

The tax was cut from 14.1 per cent cut, which translates into a savings of approximately 10 per cent when passed onto customers, meaning a meal typically costing €15 ($21 USD) will be reduced to around €13.20 ($18.50 USD).
P&V is taking advantage of the reduced prices and adding on it’s own ‘Eurobuster’ discounts of up to 45 per cent off all properties until November 2009. The company is keen to position France as an affordable choice for a family holiday.

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