The government in France has rescinded a new savings tax after a protest in Brittany turned violent.
The retroactive levy of 15.5% on savings plans, likely to hit the middle classes, was due to start in January 2014.
The tumult in Brittany, however, left the authorities in fear of other violent revolts over new taxes.
The protest in Brittany was over another new tax, an eco-tax on freight lorries. The demonstrations descended into a melee and one man’s hand was ripped off in the violent clashes.
Meanwhile, a delegation from French football clubs is due to enter crisis talks with President Hollande over the 75% “super tax” on players earning more than £1 million.
The government, which came to power last May, has introduced more than 80 new taxes on a population also being subjected to new austerity measures.
In Brittany, hundreds of farmers and lorry drivers came out in protest on Saturday over the planned eco-tax on freight vehicles using French roads.
Protesters donned red caps just like 6,000 Bretons who rose up against Louis XIV's levy on stamp paper in 1675.
The ensuing clash with the police resulted in two people being seriously injured.
The next day, the country’s budget minister promised to scrap most of the savings tax, but retain it for life insurance.
The Breton protesters were not quickly appeased. They promised an even bigger demonstration on November 2. "This was just a warning shot," said Thierry Merret, head of a farmer's federation in Brittany.
