More than 1.3 billion euros in savings will be made in 2020 thanks to a reduction in tax loopholes for companies and a slower-than-expected tax cut for large groups, the ministry said on Thursday. Economy.
In detail, the tax loopholes for companies will be planed by 615 million euros while the slower-than-expected tax cut for large companies will bring in 700 million euros more to the state, said Bercy.
Among the tax loopholes, non-road diesel will see its reduced taxation gradually disappear, with a first tax increase on July 1, 2020, the following two to take place on January 1, 2021 and January 1, 2022.
The reduced taxation of RNG for agriculture and rail transport is maintained.
“A little over 200 million euros from 2020”
Economy Minister Bruno Le Maire told the National Assembly on Thursday that this tax increase would bring “a little more than 200 million euros from 2020”, which is “consistent with our desire to accelerate the transition energy of France “.
He promised support for companies, including “financial incentives to acquire less polluting equipment” and “exemption measures for companies most exposed to international competition”.
Provisions to reduce tax incentives for corporate sponsorship have yet to be detailed, but small businesses will be spared.
Regarding sponsorship, there are “certain windfall effects”, according to Mr. Le Maire, who intends to limit the tax advantage of large companies. He announced “consultations”, after which this measure will be specified and costed.
The tax credit maintained
The research tax credit, which costs more than 6 billion euros, is maintained but operating costs will no longer be able to reach a maximum of 43% of the sums devoted to research, against 50% so far. A measure that will be voted on this year and will bring in some 200 million euros in 2021.
Finally, the specific standard deduction will be reduced. It consists of a reduction in employer contributions reserved for certain sectors of activity (construction, aviation, cleaning, etc.) and is estimated by Bercy at 1.5 billion euros.
In total, budget spending is expected to grow by 4.6 billion euros in 2020 while the savings target is around 6 billion euros, according to Bercy.
These budgetary guidelines for 2020 are in line with the government’s economic forecasts, the same source said.
“Despite the decline in global growth, French growth is resilient”, supported by the dynamics of investment, consumption and exports, according to Bercy.