Employers denounce a possible new spread of the abolition of a production tax

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 to the AFP the president of Medef Patrick Martin, one month before the presentation by the government of its draft budget for 2024.

Bercy initially intended to completely remove 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.

He also notes that the tax reduction trajectory was already "integrated by companies, primarily by industrial companies".

“Of the 4,5 billion euros of CVAE which remain to be eliminated, there are approximately 25% which would benefit industry”, notes Patrick Martin, while the government has made the reindustrialisation of France a priority.

The president of Medef further notes that companies are being "under pressure, including by the state itself, to invest massively, in particular in decarbonization", in a context of economic slowdown.

Jean-Eudes du Mesnil, secretary general of the CPME, also estimated on BFM Business that "when a commitment is made and announced, it is imperative that it be respected".

For him, President Emmanuel Macron, who had "kept his word (...) against all odds" on the reduction in corporate tax, gives in this case "the feeling that finally, he is changing heading and foot".

“We ask a lot of effort from business leaders” and they “would not understand that we do not ask for effort from the public service”, he added.

He warned of the risks weighing on investments and growth in the event of the postponement of the total abolition of the CVAE.

In an interview with Opinion, Renaissance deputy Jean-René Cazeneuve, general rapporteur for the budget at the National Assembly, wanted to be reassuring for employers, without confirming or denying a spread of the suppression over four years.

"It's one avenue considered among others and the arbitrations have not been made," he said, adding: "The promise of the President of the Republic will be kept. The sooner the better".

The president of Medef also notes that the government wants to use the present and future surpluses of unemployment insurance (Unédic) to finance France Travail, which is to replace Pôle Emploi in 2024, and the France Skills agency.

For him, these surpluses could "be directed towards a reduction in unemployment insurance contributions" that "from now on companies are the only ones to pay".