World Economy

Tax Rebates to Boost Business

Tax Rebates to Boost BusinessTax Rebates to Boost Business

French firms will benefit from bigger tax rebates on their investments as part of reforms announced on Wednesday to boost business activity. Flat business investment remains a drag on the improving economic outlook for the eurozone’s second-largest economy at a time when consumer spending and exports are picking up, Reuters reported. The government will allocate a total 2.5 billion euros (1.81 billion pounds) over five years for tax rebates to boost investment, Prime Minister Manuel Valls said. A key measure will be allowing firms to write down 140 percent of the value of the industrial investments they will make between now and April 2016. Local authorities will be reimbursed more quickly on sales tax paid on their public works investments and some tax rebates on housing works will be extended.