Health insurance tax doubled as part of austerity plan

The French Parliament has adopted a controversial plan to double a tax affecting 90 per cent of private health insurances policies from 3.5 per cent to 7 per cent.

The special tax on insurance policies is expected to raise €100 million in 2011 and €1.1 billion for a full year and is part of austerity measures to cover to the health budget deficit announced by the government on 24 August.