If you skied in France over the winter you might still be reeling at the memory of a £6 pint, or steak-hache-frites on the mountain for four with a coke and little change from £100.
The strong Euro of course had a lot to do with making the experience more painful, but the 19.6% VAT rate, one of the highest in Europe, also played a part.
From July 1st however eating out in France should get cheaper. The government has cut the rate of restaurant VAT to 5.5% and is putting pressure on restauranteers to pass on the reduction to the consumer. The catering trade will have to produce a list of up to a dozen everyday items that will benefit from the full rate cut - which should include items such as the plat du jour, mineral water, basic starters and desserts, and coffee. “A customer should be able to order a meal which is entirely subject to the full VAT reduction,” said Hervé Novelli, the Trade Minister.
That's great news for skiers and snowboarders, especially families. Alcohol however will not be subject to the same rate cut.
The move is seen as an attempt to get people back into restaurants and eating out. As in the UK the catering trade has suffered from the economic downturn with a drop of between 20 - 50% in income between January and March this year, (source Times Online). The VAT cut doesn't mean that everything will be cheaper but it could mean that a standard plat du jour will be around 10% less than last year - so that's got to be step in the right direction.
Read more at the Times Online or on the Ski Club of GB website.
