Will the Government put a brake on the reduction of taxes on production that weigh on companies? In a difficult budgetary context, the contribution to the added value of companies (CVAE), which was to be completely abolished in 2023, has finally decreased by only 50% this year. The withdrawal of the other half is scheduled for 2024.
But, according to Les Echos, Bercy was currently working on the fall distribution over the course of four years. Contacted by BFM Business, the ministry declined to comment on this information.
“There are other ways to save money”
The business world is pretty upset about this new tax cut postponement project. The abolition of this production tax, which collects 8,000 million euros a year, initially announced by Emmanuel Macron during the 2022 election campaign, was aimed at strengthening the competitiveness of French companies. But in a restricted budgetary context and with a debt that is still close to 112% of GDP, Bercy seeks to limit public spending.
Although the executive has drastically reduced corporate tax during his previous five-year term, the country remains one of the countries with the highest tax rates on production, which are related to turnover, not profit. .
According to the CPME, the companies had anticipated the abolition by 2024 and had made capital expenditures in view of this future cash gain.
Source: BFM TV
