French Government May Abandon Idea Of Raising Fuel Taxes - Prime Minister

French Government May Abandon Idea of Raising Fuel Taxes - Prime Minister

The French government will abandon the idea of raising taxes on fuel and electricity if consultations with trade unions, lawmakers and citizens fail to produce a good solution, French Prime Minister Edouard Philippe said on Wednesday.

PARIS (Pakistan Point News / Sputnik - 05th December, 2018) The French government will abandon the idea of raising taxes on fuel and electricity if consultations with trade unions, lawmakers and citizens fail to produce a good solution, French Prime Minister Edouard Philippe said on Wednesday.

Philippe reiterated the government's decision to suspend the introduction of tax measures for six months, which relate to prices for fuel and electricity. This was done in order to hold discussions with representatives of trade unions, members of parliament and the French public, and to determine the most fair and effective measures of state support.

"And if we do not find a good solution, we will not introduce these taxes," Philippe added.

On Tuesday, Philippe said that he would suspend the introduction of the three fiscal measures, including the fuel tax, amid violent protests. The prime minister also proposed holding a nationwide debate devoted to possible changes in the tax system that will last from December 15, 2018 through March 1, 2019.

The so-called "yellow vest" protests, named after the reflective vests all French drivers are required to keep in their cars, have been ongoing in France since November 17.

Saturday's "yellow vest" protests in Paris were accompanied by violent clashes between the protesters and police, rioting, burning cars and destroyed stores and banks. As a result, 412 people were detained and 133 people were injured, including 23 security officials. A total of four people have been killed in France since the start the protests.

In late 2017, the French government approved the decision to raise the direct tax on diesel fuel, which is the most popular type of fuel in the country. Diesel prices in France have risen by around 23 percent since the beginning of the year, while the gasoline prices have gone up by 15 percent. Prices were initially set to increase further in January.