The business value added contribution (CVAE) will be “permanently deleted” by the end of 2027, and “The reduction in this tax will continue from 2024”, announced the Minister of the Economy, Bruno Le Maire, during his back-to-school speech in Alex (Haute-Savoie). The CVAE was halved this year and was to be completely abolished in 2024, but the government has chosen to spread its abolition, to reduce its cost to one billion euros per year for public finances.
Officials of Medef (Movement of French companies) and CPME (Confederation of small and medium-sized enterprises) had denounced on Tuesday a possible new spread over time of the abolition of a production tax, following a log information The echoes.
The Medef was then concerned about the “reliability of the word of the state”explained Patrick Martin, the president of the employers’ organization, to Agence France-Presse, when the abolition of this tax had first been promised for 2023. He also notes that the trajectory of the tax cut was already “integrated by companies, primarily by industrial companies” and believes that companies are put “under pressure, including from the State itself, to invest massively, particularly in decarbonization”.
“We ask a lot of effort from business leaders”
Before Mr. Le Maire’s announcement, Jean-Eudes du Mesnil du Buisson, general secretary of the CPME, estimated on BFM-Business that “when a commitment is made and announced, it is imperative that it be respected”. “We ask a lot of effort from business leaders” and they “would not understand that we are not asking for an effort from the public service”he added.
In an interview at Opinion published Tuesday August 22, the deputy Jean-René Cazeneuve (Renaissance), general rapporteur of the budget at the National Assembly, had wanted to be reassuring for the employers, without confirming or denying a spreading of the suppression over four years. “It is a track considered among others and the arbitrations are not made” he had said.