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France targets loopholes for 2014 tax gain

France aims to raise most of the €6 billion in additional tax revenue it needs next year by closing tax loopholes, Finance Minister Pierre Moscovici said on Monday.

France targets loopholes for 2014 tax gain
French Finance Minister Pierre Moscovici. File photo: Besoin de Gauche/Flickr

Speaking on France Inter radio, Moscovici said that the tax burden on the economy would be increased in 2014 by 0.2 to 0.3 percentage points, or the equivalent of roughly €6 billion.

The business daily Les Echos had reported earlier Monday that the overall tax burden would climb to 46.5 percent of gross domestic product (GDP) in 2014 under a budget plan to be presented to the government on Wednesday.

Moscovici said the Socialist government of President François Hollande would keep its promise of not raising taxes on households except for the VAT sales tax, which is being hiked to lower taxes on businesses in a bid to boost job creation.

But the minister said there will be additional tax revenue "which will come essentially from unproductive loopholes from which we want to recover resources".

He noted however that most of the fiscal consolidation effort for 2014 was due to come from spending cuts, unlike 2013 when tax increases dominated.

Les Echos said the budget proposals would include €10 billion in savings from tax and spending measures.

France – the eurozone's second-largest economy, after Germany – was supposed to push its public deficit back down to EU's notional ceiling of 3.0 percent of GDP this year.

The government already said in February it would miss that target, forecasting a deficit of 3.7 percent.

The European Commission has in return insisted that France push the deficit considerably below 3.0 percent in 2014.

French central bank governor Christian Noyer said last week that France should freeze pensions, civil servant salaries and social benefits to save 40 billion euros 2014 to meet the 3.0 percent deficit target.

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How to avoid huge ‘roaming’ phone bills while visiting France

Ever wondered how to avoid paying exorbitant roaming fees when travelling in France? There are ways to keep your internet access while avoiding being hit by a big bill.

How to avoid huge 'roaming' phone bills while visiting France

Travelling without access to the internet is almost impossible these days. We use our phones for mapping applications, contacting the Airbnb, even scanning the QR code for the restaurant menu.

If you’re lucky enough to have a phone registered in an EU country than you don’t need to worry, thanks to the EU’s cap on charges for people travelling, but non-Europeans need to be careful with their phone use abroad.

First things first, if you are looking to avoid roaming charges, be sure to go into your settings and turn off “data roaming.” Do it right before your plane lands or your train arrives – you don’t want to risk the phone company in your home country starting the clock on ‘one day of roaming fees’ without knowing it.

But these days travelling without internet access can be difficult and annoying, especially as a growing number of tourist attractions require booking in advance online, while restaurants often display their menus on a QR code.

So here are some techniques to keep the bills low.

Check your phone company’s roaming plan

Before leaving home, check to see what your phone plan offers for pre-paid roaming deals.

For Brits, if you have a phone plan with “Three” for example, you can ask about their “Go Roam” plan for add-on allowance. You can choose to pay monthly or as you go. Vodafone offers eight day and 15 day passes that are available for £1 a day.

For Americans, T-Mobile offers you to add an “international pass” which will charge you $5 per day. Verizon and AT&T’s roaming plans will charge you $10 per day. For AT&T, you are automatically opted into this as soon as your phone tries to access data abroad.

These all allow you to retain your normal phone number and plan.

Beware that these prices are only available if you sign up in advance, otherwise you will likely be facing a much bigger bill for using mobile data in France. 

Buy a pre-paid SIM card

However, if you are travelling for a longer period of time it might work out cheaper to turn off your phone data and buy a pre-paid SIM card in France.

In order to get a pre-paid SIM card, you will need your passport or proof of identity (drivers’ licences do not count).

Keep in mind that you will not be able to use your normal phone number with the new SIM card in, but will be able to access your internet enabled messaging services, like WhatsApp, Facebook and iMessage. Your phone will need to be ‘unlocked’ (ask your carrier about whether yours is) in order to put a new SIM card in.

Here are some of the plans you can choose from:

Orange Holiday

This is one of France’s largest and most reputable telephone companies. The “Orange Holiday” SIM card exists specifically for tourists. At €39.99, you will get a SIM card that will enable you to make and receive calls and texts from a French phone number. You will have unlimited calls and texts within Europe, as well as two hours of calls and 1000 texts outside of Europe (for messaging people at home, for example). You will also have access to 30GB of data in Europe. 

The initial plan is valid for 14 days, and begins as soon as you begin calling, texting, or surfing the web. In order to get this SIM card, you can go into any Orange store and request it. Some supermarkets and airport kiosks might also carry this SIM card.

SFR

SFR is another well-known French phone company. Their pre-paid SIM card is called “La Carte,” and they offer several different options based on how much internet, calling, and texting you want access to. The basic plan is for 30 days and starts at €9.99 a month, which includes a €10 credit. Once the card is in your cellphone, you can add on a top-up option as needed.

You can buy this SIM card either online or in an SFR store. 

La Poste Mobile

This is the French phone company that operates in conjunction to the post office. What is especially convenient about this SIM card is that you should be able to get it at any post office in France. Plans range from €5 to €30 based on the number of days and the amount of calling, texting, and internet you are looking for. 

Bouygues Telecom

Finally, Bouygues Telecom also has some offers for prepaid SIM cards. Their plan, the “My European SIM” is especially made for tourists. It costs €39.90 and allows you unlimited calling and texting in France and Europe. The plan offers 20Gb of data. You can plan ahead for your trip by ordering this card online, but you can only activate it once you arrive in France.

The card actually comes along with a tourist guide (offered in 10 languages) and a map of Paris Metro.

Contract

Though buying a pre-paid SIM card is a very useful option for visitors spending a decent amount of time in France, it is important to be sure you are buying a pre-paid SIM, rather than accidentally signing up for a monthly plan.

Some mobile phone carriers offer very affordable monthly plans, which might look appealing to tourists. However, these plans will continue charging you after your vacation has ended, and many involve complex processes, including sending a registered cancellation letter (in French), in order to cancel the plan.

UK contracts

If you have a UK-registered mobile phone, check your plan carefully before travelling. Before Brexit, Brits benefited from the EU cap on roaming charges, but this no longer applies.

Some phone companies have announced the return of roaming charges, while others have not, or only apply roaming charges only on certain contracts.

In short, check before you set off and don’t assume that because you have never been charged extra before, you won’t be this time.

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