Taxes: income is maintained despite the economic slowdown

Posted on September 26, 2022 at 17:22

There is no need to look for a tax on “super-benefits” in the Treasury Bill for 2023 presented this Monday in the Council of Ministers. The contribution proposals of the large companies that have benefited from the crisis will await the budget debate in Parliament and the amendments that will not fail to be presented by the opposition. With the text presented this Monday, Bercy does not deviate from the line drawn since the first five years of Emmanuel Macron: neither increase nor creation of taxes, but only reduction of the tax burden.

“The rate of compulsory levies [va] a new decline will begin from 2023, going from 45.2% of GDP in 2022 to 44.7%, in particular thanks to the continuation of measures to reduce taxes paid by companies and families”, argues the Ministry of Economy and Finance.

VAT transfers

In this context, and in a “context of inflation and energy crisis”, Bercy bets on a slight drop in the State’s net tax revenue next year: they should rise to 314,300 million euros, that is, a decrease of 800 million euros. euros compared to the updated figures for 2022.

This decrease is linked to the decrease in VAT collection of 4,700 million euros for the State, due to the transfers planned to compensate social security organizations and local corporations. The increase in compensation related to the suppression of the contribution to public broadcasting is taken into account, as well as the compensation for the suppression of the tax on the added value of companies (CVAE). This production tax, which represents an 8,300 million euro burden for companies this year, will be reduced by 4,000 million in 2023 and will disappear in 2024.

The fact is that if the part of VAT that goes to the State (approximately 50%) decreases, the total will continue to increase significantly: after 204 billion in 2022, revenues will total 214 billion euros, specifies Bercy.

Corporation tax

On the other hand, corporate tax would fall by 3,700 million euros compared to the exceptional collection recorded in 2022. It is 55,200 million euros that should enter the coffers next year given a forecast of a downward trend in the fiscal result in 2022 compared to 2021, which will affect the installments paid in 2023.

Bercy forecasts that the tax on internal consumption of energy products (TICPE) reports 1,200 million euros less to the State, taking into account the additional transfers to the Agency for the financing of transport infrastructure in France.

However, other net tax revenue should increase by 8.7 billion.

Above all, the Ministry of Economy and Finance foresees a jump in the non-tax income of the State, thanks to the financing by the European Union of the Recovery Plan. A total of 5,800 million euros more than in 2022 will enter the coffers. Non-tax receipts have also been revised upwards for this year by 4,800 million with respect to the law on initial financing for dividends and similar collections and the agreement signed by McDonald’s France to end your tax dispute. The American group paid 1,250 million euros, a record for this type of procedure.

Leave a Comment

Your email address will not be published. Required fields are marked *