Business taxation: the abolition of the CVAE spread over two years, confirms Bruno Le Maire – Le Monde

The one-time reduction of 7 billion euros in production taxes in 2023 was no longer certain, in the face of the many unforeseen expenses that the government had to incur to mitigate inflation. The abolition of the contribution on the added value of companies (CVAE), a production tax that the government wanted to eliminate entirely in 2023, will finally be spread over two years, announced Monday, September 12 the Minister of the Economy, Bruno Le Mayor, confirming information from Les Echos. “We will abolish this production tax in two installments, in 2023 and in 2024”, declared the minister on LCI, adding that “we will do it in two installments for the sake of balancing our public finances”. “In 2023, there will be a reduction of four billion in production taxes,” he assured. The CVAE currently yields around double that. Bruno Le Maire nevertheless wanted to reassure business leaders about the commitment made. “This two-step trajectory will be included in the 2023 budget so that all companies, in particular the industries to which I attach vital importance, have the assurance that this production tax will indeed be abolished in 2024”, he added. he adds. The possibility of spreading the abolition of the CVAE over two years had been raised by the newspaper Les Echos on Thursday. The Ministry of Public Accounts did not then wish to comment on the information, without however denying it. Strong reaction of the Medef The prospect of this spread caused a strong reaction from the business movement in France (Medef). “We would not understand that the CVAE is a budgetary adjustment variable at a time when companies are also suffering from inflation, the intensification of international competition and must also invest in decarbonization”, declared to Les Echos on Monday the number two of the employers’ organization, Patrick Martin. The abolition of the CVAE in 2023 was announced at the beginning of July by the Prime Minister, Elisabeth Borne, in her general policy speech. Read also: Article reserved for our subscribers Purchasing power: the government does not rule out involving companies Bruno Le Maire has also once again defended the research tax credit (CIR), a tax relief often criticized for be diverted from its objective of funding research by companies, judging that it “makes our country attractive” and “enables innovation and investment in innovation to be improved”. Read also: Article reserved for our subscribers Inflation, purchasing power: Bruno Le Maire wants to stick to his “supply policy” Le Monde with AFP