The Contribution on the added value of companies (CVAE), one of the production taxes paid by companies, will be abolished “as of the 2023 finance law”, announced Prime Minister Elisabeth Borne in her general policy speech on Wednesday.
Concretely, it is nearly 8 billion which will make it possible to strengthen the competitiveness of our companies, three quarters of SMEs and ETIs, she declared before the National Assembly, adding that this loss of resources for communities will be compensated.
The abolition of this tax, much criticized by companies who see it as an obstacle to their competitiveness, was a promise made by Emmanuel Macron.
But with the announcement of new spending to support purchasing power in the face of inflation, the abolition of the CVAE in one go, widely defended by the Minister of the Economy Bruno Le Maire, was not completely acquired.
The reduction in production taxes, these taxes paid by companies and which are not based on their profits, began under the previous five-year period, with a reduction in 2021 of 10 billion euros via the halving of the CVAE and property taxes (CFE) on industrial sites.
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Previously, they brought in a little over 70 billion euros per year, thus representing approximately 3.7% of GDP, and placing France in second place in Europe behind Sweden, while their weight was on average 1.5% of GDP. GDP in the euro area.