current affairs yellow vest protest

Yellow Vests Protests in France

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“Yellow Vests” renewed protests in France.
• Violent protests were observed in France by the “Yellow Vests” due to rising living costs.
Major Reason: The proposed increase in the “Fuel Tax” by the newly elected President Emmanuel Macron’s government.
Challenges: It will have adverse impact on the climate change policy. The purpose of increase in “Fuel Tax” was to induce motorists to go green, and reduce the CO2 emissions.
Now, with the violent street protests, the Government will have to look for other alternatives to meet its obligations under Paris Climate Change Agreement.

Steps taken by the French Government: It has decided to roll back its proposal to increase the “Fuel Tax”. Some of the Fiscal policy measures taken are as given below:
A minimum wage increase by €100 per month from 2019 and it will be met by the government rather than employers.
A planned tax increase for low-income pensioners would be cancelled.
Overtime pay would no longer be taxed.
Employers would be encouraged to pay a tax-free end of year bonus to employees.

• Yellow Vests: The protests are named after the high-visibility fluorescent yellow safety jackets French motorists have to keep in their cars since 2008. They are the group of people who are protesting the rise in Fuel Tax.
Purpose of Keeping Yellow vests: The vests are intended for use in emergencies, and protesters used them to convey the message that they were living in such dire straits that even a small tax increase, could drive them to rebellion.

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