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LOCAL AUTHORITIES FEAR REFORM OF LOCAL BUSINESS TAX WILL AFFECT THEIR BUDGETS, WHILE MPS VOTE IN FAVOUR OF THE REFORM THOUSANDS of local mayors whistled at Prime Minister François Fillon in
protest at the government's plans to reform the _taxe professionnelle_, a major source of revenue for them. Fillon was met with the hostile reception as he addressed 10,000 mayors from
all over the country who were gathered in Paris for their annual conference. The government wants to axe the _taxe professionnelle_ in the New Year - which goes towards departmental councils
and local communes - saving a reported €12bn a year. Fillon has promised mayors that getting rid of the tax will not have a major impact on their budgets. Its replacement, called a
_cotisation locale d’activité_, will be calculated based on a combination of property rental values and business turnover but will no longer tax investments, in an attempt to boost business
growth. The reform was passed by the National Assembly last night, with 336 votes in favour and 227 against, but the Senate still has reservations and is due to vote on the reform later this
week. A further debate on how the money from the new tax will be distributed is expected next month. Most businesses pay the _taxe professionnelle_, although there are exceptions for farms,
the press, family-run artisan businesses and some kinds of teaching and artistic, intellectual or sporting activities. Photo: Benjamin Lemaire_Creative Commons RELATED STORIES: Local tax
burden up 8% on last year More changes to taxe pro reform