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11/19/13

France: French PM announces plan to simplify tax system

French Prime Minister Jean-Marc Ayrault said on Monday he wanted to simplify the tax system, announcing a consultation process with the aim of proposing a broad tax reform to parliament by 2015.

The Socialist government has suffered criticism over tax increases introduced to shore up public finances, with business leaders saying an excessively complex and costly system is driving away investors.

"I think the time has come for a transparent overhaul of our tax system," Mr Ayrault told Les Echos business daily. "The objective is to come up with rules that are fairer, more efficient and easier to understand." "This overhaul will obviously require in-depth dialogue. I will meet all social partners in the coming days," he said, referring to business groups and labour unions.

Frustration over tax and unemployment stuck at 11 per cent, have dragged President Francois Hollande's approval rating to 20 percent, the lowest score for a postwar president, an Ifop poll showed.

A planned tax on heavy road transport provoked violent protests in western France where demonstrators torched toll gates, leading Mr Hollande to suspend the policy.

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