THE French Parliament has given its nod to the Govt's EUR 12 bn
austreity plan for 2011 and 2012. The objective is to contain the fiscal
deficits notwithstanding the tardy economic growth rate. The House also approved
the bail-out package for Greece.
The
French Finance Minister had also proposed a 1.2% hike in the social levies
imposed on income from capital as well as for an increase in the taxation of
health insurance contracts.
The National Assembly also voted to abolish
the consolidated global profit regime, enabling losses incurred by foreign
subsidiaries to be deducted from profits of the French parent
company.
Other key measures adopted by the house include plans to amend
the taxation of capital gains derived from the sale of real estate, excluding a
main residence. Such changes include plans to grant total exemption from tax for
property held for over 30 years (compared to 15 years currently).
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