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Jean Castex details the tax cuts for companies

2020-08-26T19:19:53.877Z


In front of the Medef, the Prime Minister also announced an extension of the partial activity regime.Guest of honor for the opening of La REF, the big back-to-school meeting organized by Medef, the Prime Minister, Jean Castex, did not come empty-handed. In front of a rather enthusiastic audience of nearly 4,500 business leaders, masked, installed in the grandstand of the racetrack of the Longchamp racecourse, he detailed this Wednesday some of the measures of the recovery plan, including the pres...


Guest of honor for the opening of La REF, the big back-to-school meeting organized by Medef, the Prime Minister, Jean Castex, did not come empty-handed. In front of a rather enthusiastic audience of nearly 4,500 business leaders, masked, installed in the grandstand of the racetrack of the Longchamp racecourse, he detailed this Wednesday some of the measures of the recovery plan, including the presentation was postponed to September 3. And not one that leaves an entrepreneur insensitive… A major claim, recalled to the podium by the boss of Medef, the reduction in production taxes from 2021 of 10 billion euros has been confirmed by the Prime Minister.

Business leaders now know the details: the executive plans a decrease of 7.25 billion euros by halving the contribution on the added value of companies (CVAE), with the total elimination of the share of this tax accruing to the regions. These will be compensated by receiving a fraction of the national VAT. In addition, it intends to considerably reduce the local taxation of industrial taxes, which will allow a gain of 3.25 billion euros.

Read also: Reforms: the Castex method put to the test of social dialogue

More specifically, the executive decided to lower the property tax on these premises by 1.75 billion euros and the financial contribution of companies (CFE) by 1.5 billion. The communities that collect these taxes will be fully compensated. Finally, the government intends to lower the cap on the territorial economic contribution (CET) - which includes the CVAE and the CFE -, currently set at 3% of the added value produced by the company. He wants to apply a cap on the CET due at 2% of added value in order to limit any side effects. The Prime Minister also confirmed the continuation of the reduction in the corporate tax (IS).

The challenge is to make this unprecedented and historic crisis by its duration and depth, a fulcrum for the transformation of our economy.

Jean Castex

Of the 100 billion euros that will be released as part of the recovery plan, "at least a quarter " will benefit the smallest, said the head of government. Which intends to rely on the companies which he praised " impressive endurance ", and which will still have to hold " because the state cannot alone ".

To read also: Guillaume Tabard: "Covid, recovery plan: the bets of Jean Castex"

" The uncertainties have never been so important, but neither have the rebound capacities ," said the Prime Minister, following in the footsteps of Geoffroy Roux de Bézieux, the head of Medef, who had just given a speech tinged with optimism . " France has held up to the shock, which makes it possible to look to the future with confidence, " he insisted, adding that the challenge was to " make this unprecedented and historic crisis by its duration and depth, a point support for the transformation of our economy. "

Partial activity relaxed

If the number of employees on short-time work has considerably reduced, Jean Castex also wanted to make a gesture in favor of those whose activity is still very reduced. He thus announced the extension of the current compensation conditions, which were to change on October 1, until November 1. Companies that have signed a long-term partial unemployment agreement will be able to apply these rules for another two years. As for companies in the most affected sectors (culture, sport, tourism, events), they will retain access to partial activity until the end of the year, even without an agreement.

Questioned by the bosses on the obligation to wear a mask in business, Jean Castex justified this decision by " the primary objective of doing everything possible to avoid a general reconfinement ". " The High Council of Public Health is examining the possibility of making it more flexible depending on the premises and the activities, " he said, adding that there would be room for pragmatic solutions.

Source: lefigaro

All news articles on 2020-08-26

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