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

The prospect of this spread over two years of the abolition of the contribution on the added value of companies (CVAE) made MEDEF react strongly, Monday.

Le Monde With AFP

The drop in one time of the 7 billion euros in production taxes in 2023 was no longer certain, faced with the many unforeseen expenses that the government had to initiate to mitigate inflation. The abolition of the contribution on the added value of companies (CVAE), a production tax that the government wanted to make disappear entirely in 2023, will finally be spread over two years, the Minister of the Economy, Bruno les on Monday September 12, Mayor, confirming a information of echos.

“We will delete this production tax in twice, on 2023 and 2024,” said the minister on LCI, adding that “we will do it twice for the sake of balance of our public finances”. “In 2023, there will be a drop of four billion in production taxes,” he said. The CVAE is currently reporting about double.

Bruno Le Maire nevertheless wanted to reassure business leaders concerning the commitment made. “This two-step trajectory will be entered 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 be eliminated in 2024,” He added.

The possibility of a spread over two years of the abolition of the CVAE had been mentioned by the newspaper Les Echos on Thursday. The Ministry of Public Accounts had not wanted to comment on the information, without however denying it.

Vive reaction of the MEDEF

The prospect of this sprawl has strongly reacted the movement of French companies (MEDEF). “We would not understand that the CVAE is a variable of budgetary adjustment at a time when companies also suffer from inflation, from the intensification of international competition and must also invest in decarbonation,” told Les Echos on Monday the number two of the employers’ organization, Patrick Martin.

The abolition of the CVAE in 2023 had been announced in early July by the Prime Minister, Elisabeth Borne, in her general policy speech.

Bruno Le Maire also again defended the research tax credit (CIR), a tax relief often criticized to be diverted from his objective of financing research by companies, judging that he “does the Attractiveness of our country “and” improves innovation and investment in innovation “.

/Media reports.