The devices that contribute to the competitiveness of the French economy, such as reduced VAT on restaurants will not be affected in respect of the tax shelters of companies that the government wants to reduce or eliminate to finance lower taxes on income, as announced by the Finance minister Bruno Le Maire in an interview with Echoes . The president of the Republic has promised last Thursday a decline of the five billions of the income tax (IR) of households for restoring purchasing power to the French after the attack of the "yellow Vests". "We will not receive not to the VAT restoration, as in fine , it is a tax on households," said the minister of Economy and Finance, in this interview, on-line Thursday evening. Emmanuel Macron "don't want tax increases but tax cuts," he argued.
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The government will also maintain the terms and conditions of the transformation of the tax Credit competitive employment (CICE) "decreasing" direct expenses", as well as the research tax credit, says Bruno Le Maire. He said nothing, however, about the advantage on the diesel non-road for a number of companies. "It is too early to say whether such or such a niche will be removed or recalibrated," he said to the daily economic. About tax shelters companies, the minister did state on Thursday morning of the first discussion "constructive" with the president of the Medef, Geoffroy Roux de Bézieux.
"The reduction of public expenditure is necessary in order to fund the tax cut"
The Finance committee of the national Assembly who will work on the subject will present its proposals at the end of may, says Bruno Le Maire. As to the decrease of the IR which will be about 15 million households by 2020, Bruno Le Maire, said on Tuesday that he would propose an average fall of € 350 for the homes to be taxed at the first bracket of 14% and 180 euros for those who pay the second tranche to 30%. "420.000 wealthiest households will not be affected by the tax decrease to the extent that we neutraliserons the effects for the third and the fourth tranche," says Bruno Le Maire, to Echoes .
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The minister does not pronounce on a possible lowering of various taxes in the so called production, which occur in the businesses in addition to corporate tax (IS), while recognizing that they are "higher in France than in our neighbors." "This also includes a consultation with the representatives of local governments, because the territorial dimension is strong", merely there to report. The SI will be reduced to 25% for all businesses by 2022, confirms Bruno Le Maire. The government is also banking on a government-owned operators to finance lower taxes on income. With the minister of the public Accounts Gérald Darmanin, "we have already asked the ministers to look at activity by activity what public operators should be transformed to be more effective with an economy of public money", said Bruno Le Maire, on Thursday morning to the press.
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In the interview to the Echoes , it emphasizes, for example, that the reform of Chambers of commerce and industry (CCI) will save 550 million euros over the five year period. "Each minister will be invited to make proposals for change on organizations in which he has the tutelage", he adds. "The reduction of public expenditure is necessary in order to fund the tax cut", he adds. "It will not be financed on credit."Updated Date: 06 May 2019, 00:00