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The executive pulled out all the stops on Monday to reassure employers. After a short video message from the President of the Republic, the Prime Minister spoke at the Meeting of Entrepreneurs of France, an event that traditionally marks the return of Medef. Elisabeth Borne repeated once again during this day that "there will be no tax increases" during the current five-year term, especially for businesses. “Some fear that companies will be taxed more”, but “there is no question of it”, she insisted.
At the beginning of the summer, the government announced that it was postponing by the end of the five-year term the abolition of one of the main taxes on production, the contribution on the added value of companies or CVAE, which was originally supposed to disappear. end of 2023. “Our companies, particularly our industrial companies, urgently need this immediate elimination, at a time when international competition is intensifying and when we must invest massively in decarbonization”, regretted the president of Medef Patrick Martin, shortly before the Prime Minister's speech.
The postponement of this tax abolition for several years constitutes “a very bad signal” sent to business leaders, alarmed Patrick Martin at the podium. This measure “alters the confidence of entrepreneurs in the word of the state”, he added. In his video message broadcast to business leaders gathered this Monday at the Hippodrome de Longchamps, Emmanuel Macron said: "You know that you have a president and a government who, when he commits to things, does it" .
The government justifies the postponement of the abolition of the CVAE by the poor situation of public finances. "If we didn't do it, I think all business leaders know it, it would have an immediate impact on interest rates and therefore on our economic activity," said Elisabeth Borne. The exact timetable for the abolition of this production tax will therefore depend on the control of public finances. Despite this imperative, the Prime Minister is firmly committed to ensuring that “the entire CVAE (be) abolished before the end of the five-year term”.
