France's government on Wednesday postponed a parliament debate on a draft law that curtails tax breaks and other advantages for small-scale entrepreneurs, angering business owners who say the delay creates legal confusion, reports Reuters.
The Socialist government says benefits for self-employed people under a special "auto-entrepreneur" status introduced by former president Nicolas Sarkozy have failed to spur enough of them to create fully fledged businesses and are open to abuse.
But the entrepreneurs have fought back against an attempt by Sylvia Pinel, minister for artisans, trade and tourism, to clamp down on their tax and administrative advantages, saying the scheme has helped many off welfare and into part-time work.
Many unemployed have found work thanks to the scheme, while other workers use it to supplement their income, such as teachers offering after-school tutoring. The scheme has also allowed low-skill workers such as house painters to declare work that previously was off the books.
The issue - thrust into the spotlight this year by an online pressure group - is the latest headache for a government whose focus on squeezing more tax out of the business sector has drawn frequent accusations that it is stifling entrepreneurship.
Pinel presented details of her bill at a cabinet meeting but said it would not be sent to parliament until January with a key clause - a lowered revenue threshold where the auto-entrepreneur scheme would cease to apply - still to be clarified.
Read more of this report from Reuters.