France Decides to Put End to Fiscal Benefits for Qatar Amid Gulf Diplomatic Row

France will get rid of the fiscal advantages it has provided for Qatar since the presidency of Nicolas Sarkozy, a move which comes a day after a number of nations, including Qatar's closest neighbors on the Persian Gulf, broke off diplomatic ties with the peninsular nation, French Minister of Justice Francois Bayrou said Tuesday.

PARIS (Sputnik) — On June 5, Bahrain, Saudi Arabia, Egypt and the United Arab Emirates severed diplomatic relations with Qatar. The states accused Qatar of supporting terrorist groups, particularly the Muslim Brotherhood terrorist movement, as well as of interfering in other countries' domestic affairs. Libya made a similar decision. Yemen cut diplomatic relations citing Doha's links with Houthis. The Maldives took the same step, citing extremism and terrorism concerns.

"During the presidential term of Nicolas Sarkozy, the French Republic introduced incredible fiscal benefits for Qatar. Can this situation continue? I don’t think so," Bayrou told the BFMTV broadcaster.

These benefits came in the form of the income tax treaty, which was adopted by Sarkozy in 2008. The treaty exempts Qatar and its public entities from taxes on the profits on the real-estate sales in France.

"I believe it is important that we have a fiscal equity. And so the president [Emmanuel] Macron said during his campaign," Bayrou added.

Macron stated in April that he would be very firm on this issue and would "put an end to all the agreements favoring Qatar in France."

In the last decade, Qatari investors have made some significant acquisitions in France, including the Parisian PSG football club and iconic Printemps department store chain.