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French finance minister says he will change corporate tax plans

Pierre Moscovici says that the widely-criticised planned new business tax will be replaced by a temporary increase in existing corporation tax.

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France will scrap plans for a new corporate tax which had been criticized by business leaders and instead temporarily increase existing taxes, Finance Minister Pierre Moscovici said in an interview with local media, reports Reuters.

The government had announced in its 2014 budget bill last month a change in corporate tax policy by removing an annual flat tax that existed on top of other levies and introducing a new one based on operating profits.

That new tax on operating profits was meant to bring in 2.5 billion euros ($3.40 billion).

The new tax "will not be", Moscovici said in a joint interview with RTL radio, LCI television and Le Figaro daily.

"What we suggest is ... a temporary increase in (existing) corporate tax."

Read more of this report from Reuters.

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