Tax increase on theme parks suspended

Lawmakers rejected recent French government plans to increase the VAT on entrance fees from 5.5% to 19.6%, amid concerns that the proposal will threaten the future of national theme parks, as well as local jobs in entertainment.

As part of a multi-billion euro package of budget savings, President Nicolas Sarkozy aims to raise 11 million euros this year and 90 million euros next year by raising the VAT attached to park entry fees. However, the plans were rejected by a key committee in the lower house of parliament yesterday.

The national association for leisure activities, Snelac, called the proposal “discriminatory”, saying "No other sector has been faced with rises of almost 14%."

Marineland in Antibes is visited by more than one million spectators each year, and is the largest marine life attraction in Europe. With entry prices for children already costing over 25 euros, the proposed increase threatens to dent the number of tourists who already pay high prices for ‘the must see attraction of the Côte d’Azur’.

On Thursday, Budget Minister Valérie Pécresse said she remained optimistic that the measure would be adopted. But for now, Prime Minister François Fillon’s attempt to net an extra 90 million euros annually remains on hold.

Louise Kirby