The one-off € 7 billion reduction in production taxes in 2023 was no longer certain, given the many unexpected expenses the government had to incur to mitigate inflation. This was announced on Monday 12 September by the Minister of Economy, Bruno Le Mayor, the abolition of the contribution on the value added of companies (CVAE), a tax on production that the government wanted to eliminate completely in 2023, confirming the information from Echoes.
“We will remove this production tax twice, in 2023 and in 2024”the minister said on LCI, adding it “We will do it twice for the sake of rebalancing our public finances”. “In 2023 there will be a reduction of four billion in taxes on production”, he assured. The CVAE currently produces about twice as much.
However, Bruno Le Maire wanted to reassure the top management of the commitment made. “This two-step trajectory will be included in the 2023 budget so that all companies, especially the industries to which I attach vital importance, have the certainty that this production tax will actually be abolished in 2024”He added.
The newspaper had raised the possibility of spreading the abolition of the CVAE in two years The echoes from Thursday. The Ministry of Public Accounts then did not want to comment on the information, without however denying it.
Strong Medef reaction
The prospect of this diffusion has aroused a strong reaction from the entrepreneurial movement in France (Medef). “We would not understand that the CVAE is a fiscal adjustment variable at a time when companies are also suffering from inflation, the intensification of international competition and must also invest in decarbonisation”he told al Echoes On Monday the number two of the employers’ organization, Patrick Martin.
The abolition of the CVAE in 2023 was announced in early July by Prime Minister Elisabeth Borne in her general policy speech.
Bruno Le Maire also resumed the defense of the tax credit for research (CIR), a relief often criticized for having been diverted from the objective of financing research by companies, considering it “Makes our country attractive” And “helps to improve innovation and investment in innovation”.