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PARIS — In a big pre-election gamble, President Nicolas Sar- kozy has promised a hike in France’s consumption tax to pay for a new measure aimed to lower the high cost of labor and boost job creation.
Sarkozy has gone on national TV to say his conservative government will announce a 1.6 percent increase in the value-added tax, to 21.2 percent, and raise fees on investment income. Sarkozy said Sunday that the new tax revenues aimed to let the state take over payment of some worker benefits now paid for by employers, as a way to lower high labor costs and make French products more competitive.
Denver Post wire services
