Against the advice of the Finance and Government Committee, senators on Tuesday approved by a show of hands an amendment from the environmental group that cut by half the VAT levied on food and hygiene products in Guadeloupe, Martinique and in session.
Guadeloupe la 1ère • Published on November 28, 2023 at 3:30 p.m., updated on November 28, 2023 at 3:38 p.m.
It is a suprise. The Senate yesterday, Tuesday November 27th, approved an amendment from the environmental group that reduces VAT on basic products in Guadeloupe, Martinique and Réunion. Since the amendment was adopted against the advice of the Finance Committee and the government, it would have little chance of being adopted in the final text of the Finance Law (PLF) for 2024.
1.05% is the VAT rate that may be applicable as a result of this change to water, soft drinks, food (“except confectionery, margarines, vegetable fats and caviar”), toiletries and personal care products, including feminine hygiene products, sanitary protection, household cleaning products, pharmaceuticals products and even school supplies. Currently the reduced VAT rate is 2.1%, which is equivalent to the rate of 5.5% in France.
An amendment against which Thomas Cazenave, Minister of Public Finance, expressed a negative opinion. Victorin Lurel, PS senator from Guadeloupe, reacted immediately by denouncing on social networks “the bad things that have been inflicted on the overseas territories for six years”.
🟢I vehemently supported the proposal@PoncetRaymondeIncrease in VAT on essential products abroad to 1.05%. It happened ✌🏾
The opportunity to denounce the government’s refusal and recall its inaction or, even worse, the terrible things that have been done to the OM for six years pic.twitter.com/yKe5O21rqB– Victorin LUREL (@VictorinLurel) November 27, 2023