President Francois Hollande’s government will have to go beyond current efforts on tax if it hopes to attract banking business to Paris in the wake of the U.K. decision to leave the European Union, BNP Paribas Chief Executive Officer Jean-Laurent Bonnafe said.
Bloomberg News reports that since Britain voted to leave the 28-nation EU June 23, remaining members of the club including France and Ireland have started pitching to win business and jobs from London, the region’s largest financial centre.
In France, Prime Minister Manuel Valls pledged to improve a special tax regime for foreigners, among other measures. Bonnafe says that won’t be enough.
“Several other significant steps are needed to bring back competitiveness and attractiveness to Paris” as a financial center, Bonnafe, the head of the bank, told journalists on Thursday.
Reducing or eliminating a payroll tax on French bankers’ pay is the “first priority” and efforts should also be made to reduce the corporate tax rate toward a 26-28% range seen elsewhere in Europe, from about 33% currently, Bonnafe said. France’s wealth tax is also among factors currently playing as “deterrents” to attract jobs to Paris, Bonnafe added.
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