Employers denounce a possible further staggering of the abolition of a production tax

Medef and CPME officials on Tuesday denounced a possible further staggering in time of the abolition of a production tax, the Medef worrying about the reliability of the state’s word.

The business value added contribution (CVAE) was halved this year and was to be completely abolished in 2024, but according to information from the newspaper Les Echos not confirmed by the government, the abolition of the second half would be spread over four years.

I have not had any definitive comments from Bercy and particularly (from the Minister of the Economy) Bruno Le Maire but, clearly, a spreading of this suppression up to four years is under study, declared to AFP the president of the Medef Patrick Martin, one month from the presentation by the government of its draft budget for 2024.

Bercy initially intended to completely eliminate the CVAE in 2023.

It poses us first a problem of principle, which is that of the reliability of the word of the State, explains the president of the first French employers’ organization.

It also notes that the tax reduction trajectory was already integrated by companies, primarily by industrial companies.

Of the 4.5 billion euros in CVAE that remain to be eliminated, there are about 25% that would benefit industry, notes Patrick Martin, while the government has made the industrialization of France a priority.

The president of Medef also notes that companies are under pressure, including from the State itself, to invest massively, particularly in decarbonization, in a context of economic slowdown.

Jean-Eudes du Mesnil, general secretary of the CPME, also felt on BFM Business that when a commitment is made and announced, it is imperative that it be respected.

For him, President Emmanuel Macron, who had kept his word (…) against all odds on the reduction of corporate tax, gives in this affair the feeling that finally, he is changing course and of foot.

We ask a lot of effort from business leaders and they would not understand if we do not ask for effort from the public service, he added.

He warned of the risks weighing on investments and growth in the event of the postponement of the total abolition of the CVAE.

In an interview with Opinion, Renaissance deputy Jean-Ren Cazeneuve, general rapporteur for the budget in the National Assembly, wanted to be reassuring for employers, without confirming or denying a staggering of the suppression over four years.

This is one track considered among others and the arbitrations have not been made, he said, adding: The promise of the President of the Republic will be kept. The sooner the better.

The president of Medef also notes that the government wants to use the present and future surpluses of unemployment insurance (Undic) to finance France Travail, which is to replace Ple Emploi in 2024, and the France Competences agency.

For him, these surpluses could be directed towards a reduction in contributions for unemployment insurance that now companies are the only ones to pay.

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