'Social VAT': VAT increase to 21.2% and cut in family contributions, passed then repealed before taking effect

Article 2 of the amending finance act of 14 March 2012 provided, from 1 October 2012, for the standard VAT rate to rise from 19.6% to 21.2% and for part of VAT revenue to be allocated to the family branch, in return for removing employer family allowance contributions on wages up to 2.1 times the minimum wage (tapering between 1.6 and 2.1 times). The second amending finance act of 16 August 2012 (Article 1) repealed these provisions before they took effect; the standard VAT rate remained 19.6%. Only the two-point increase in the social levy on capital income, provided for in the same article, was kept.