The president of Medef Patrick Martin denounced Tuesday a possible new spread over time of the abolition of a production tax, worrying about the “reliability of the word of the State”.
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 AFP 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.
Moreover, the Medef considers unlikely the abolition of a relief of employers’ contributions on wages between 2.5 and 3.5 Smic, wanted by some parliamentarians of the majority.
We do not see a great appetite from the government to go down this path, notes Patrick Martin.
The president of Medef 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.
Regarding the increase in taxation on non-road diesel (GNR), he recalls an informal agreement between the government on the one hand, and farmers and public works professionals on the other hand, for a phased increase by 2030. He hopes the increase in 2024 will not be particularly high.