Question 12641 — employment and activity

Summary

In order to strengthen the competitiveness of businesses, and in accordance with the commitments of the President of the Republic, the Government has approved the transformation of the tax credit for competitiveness and employment (CICE) into a lasting reduction in charges and reinforced the general reduction in social contributions with a maximum exemption at the level of the minimum growth wage (SMIC). As part of the security financing law Social Security 2019, the Government has significantly strengthened the general reductions in social charges on low wages. French agriculture is overall a large beneficiary of these provisions, which came into force on January 1, 2019, which will make it more competitive as a whole. In this general context, it was envisaged to reduce the exemptions for casual employees through the elimination of the TO-DE system from January 1, 2019. But the parliamentary debate, with a Government listening, was an opportunity to revisit this provision. It was therefore decided to maintain compensation for employers of labor, with the establishment of a plateau of up to 1.20 SMIC in 2019 and 2020. Ultimately, in 2019, for Ferme France, it will be a gain of €47 million for all agricultural employers who employ permanent and occasional workforce. This transitional period will allow structural reforms favorable to agricultural businesses to produce their effects. It is particularly important to look at the overall environment applying to agricultural operations: the CICE reform should not be read independently of other reforms undertaken by the Government. The Government has thus initiated, in conjunction with the parliamentarians and economic actors, in-depth work to improve agricultural taxation, the reform of which is included in the finance bill for 2019. The objective is to give farmers the tools allowing them to improve resilience in the face of hazards and the competitiveness of their businesses. Among these tools, the establishment of precautionary savings, which are particularly flexible in use, should be widely used by sectors experiencing significant fluctuations in income from one year to the next, including viticulture and specialty crops. This mechanism, concrete and eagerly awaited, allows operators, in good years, to deduct substantial sums from their taxable income (ceiling of €150,000), which they can reintroduce into their income statement in bad years, over a period of ten years. To enable our agriculture to be ever more competitive, taking into account the diversity of French agriculture and the differences between the Member States of the European Union, the challenge is to effectively combine: - the transversal reduction of charges and the strengthening of general reductions, which support price competitiveness; - tax tools that allow companies to manage price volatility; - support for the promotion of production (increase in added value and upscaling) planned as part of the follow-up to the general statements on food and the major investment plan.

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