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The construction industry wins its standoff with the government over non-road diesel

2024-02-14T06:10:04.666Z

Highlights: The government has announced that it will fully compensate for a tax increase on non-road diesel (GNR) planned for 2024 for small construction and public works companies. “Our demands have been heard,” said Capeb, the employers’ organization of building craftsmen. In Lorient and Brest, public works workers have been blocking access to oil depots for several days, in order to put pressure on the government to maintain their tax loophole on GNR. In its press release, Bercy estimates that the compensation granted to small construction companies should cost the State around 20 million euros.


The government announced that it would fully compensate for a tax increase on non-road diesel (GNR) planned for 2024 for small


Less than two weeks after asking to be treated in the same boat as farmers, certain construction companies have won their case.

The government has announced that it will fully compensate for a tax increase on non-road diesel (GNR) planned for 2024 for small construction and public works companies.

🔴In a context of declining activity in the sector, @BrunoLeMaire announces several support measures for construction and public works companies.


More info 👉 https://t.co/mAW2iDRMS4 pic.twitter.com/pNShxpuE4M

— Ministry of Economy and Finance (@Economie_Gouv) February 13, 2024

“Our demands have been heard,” said Capeb, the employers’ organization of building craftsmen, in a press release.

For its part, the French Building Federation (FFB) also “welcomes” the announcement from the Ministry of Economy and Finance, it indicated on the social network X (formerly Twitter).

The FFB welcomes this first announcement from Bercy concerning compensation for the increase in #GNR for our SMEs with up to 15 employees.


👉 This is a first step while waiting for the simplification announcements of #MaPrimRenov planned for next Thursday by @ChristopheBechu.



The announcement of the… pic.twitter.com/rMckxkK5sF

— FFB (@FFBatiment) February 13, 2024

Bercy had indicated a little earlier that the increase of 5.99 cents per liter in a tax on non-road diesel (GNR), planned from this year for the construction sector, would be compensated in 2024 for companies of 15 maximum employees.

According to the ministry, this measure is described as “support” in the face of the “decline in activity” in the construction sector.

In detail, it will allow small businesses to be reimbursed up to 20,000 euros.

Compensation will be paid at the beginning of 2025 for RNG expenses incurred in 2024.

However, this threshold of 15 employees displeases the National Federation of Public Works (FNTP).

According to her, this amounts to creating “a niche within a tax niche”, in fact making the system more complex, going against the government's promises of administrative simplification.

The FNTP also fears that the threshold will create a “distortion of competition” among small and medium-sized construction companies.

Blockages lifted in Brittany

In Lorient and Brest, public works workers have been blocking access to oil depots for several days, in order to put pressure on the government to maintain their tax loophole on GNR.

Tuesday evening, both blockages were lifted.

In its press release, Bercy estimates that the compensation granted to small construction companies should cost the State around 20 million euros.

The ministry adds that the year 2024 will be “used to organize a broad consultation with representatives of the sector” on the measures which will accompany “the trajectory of gradual extinction” of the tax advantage on GNR.

Among these measures, cited in the press release are “financial support for the sector, the promotion and valorization of biofuels, measures to support equipment for electrical equipment or those that consume less fuel, strengthening controls on the good use of applicable reduced rates.”

Bercy finally indicates that the simplification bill for businesses, currently being developed, will provide for a reduction in payment deadlines for public administrations, “which will help improve the cash flow of companies in the sector”.

The ministry will also consider in particular the possibility of "standardizing and strengthening the level of default interest rates applied to public defaulters", as well as an automatic application of these default interests, "rather than on request of the company”.

Finally, the government is announcing the holding in the coming weeks of a National Construction and Renovation Council which will address all of these subjects.

Source: leparis

All business articles on 2024-02-14

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