French government urged to reconsider commercial property taxes | 30 October 2013
The French government has been urged to reconsider some of the taxes recently forced on construction companies.
Christophe Bouthors, CEO of logistics group Panhard, has claimed that the taxes are restricting companies from going ahead with commercial developments in Paris.
Bouthors explained that most of the projects planned in Paris are now uneconomical because of the new taxes, and many developers may look to move their projects outside of the capital as a result.
This could have a significant effect on the future supply of commercial properties in Paris, potentially sending prices through the roof.
Speaking to pie-mag.com, Bouthors explained: “Eight out of ten operations planned in zones 2 and 3 of the Ile-de-France region cannot be carried out because of the financial imbalance resulting from this new taxation,
“The tax burden on development operations seems to be disproportionate compared with that on existing buildings and yet the creation of the new transport network will have an immediate and significant impact on the values of existing buildings.”
The taxes Bouthors refers to were introduced in 2011 to help fund the Grand Paris regional renewal plan. They include a levy on construction of all types of commercial property and a rise in the annual tax paid by owners of commercial premises.
Businessimmo.com reports that Bouthors has called for the National Assembly Finance committee MP Thierry Mandon to raise this issue with the French government.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
Research by Qube Global Software reveals that only a tiny proportion of the UK’s leading property and facilities management companies believe they are harnessing technology successfully.
Qube Global Software and Engage enter joint venture in boost to Build to Rent Sector.
We are pleased to confirm that Qube Global Software will once again be exhibiting at MIPIM in Cannes, South of France.