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22076

Question 22076 — taxes and duties

answeredFrance· National Assembly· FR

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1 April 2020

Summary

Ms. Valérie Boyer alerts the Minister of the Economy and Finance about the tax and social abuse of craftsmen and building contractors. The Government first removed the reduced taxation applied to non-road diesel for reasons presented as environmental, even though there is no immediate alternative technical solution to allow companies to escape the surcharge. It should be remembered that the cost of the operation amounts to 800 million euros for the construction sector alone. Then, during the Prime Minister's general policy speech, the latter announced the end of the "specific standard deduction", which particularly worried the profession. It concerns the 10% reduction for professional expenses, which since 1931, in the construction industry, corresponds to the payment of employees' packed lunches and their mileage expenses. Also, removing this reduction not only means increasing the gross price and therefore excluding from the “Fillon” reductions a whole share of salaries between 1 and 1.6% SMIC, but above all, it also means reducing the net salary of workers. What the Prime Minister considers as a measure of “social justice” would in reality represent an average increase in costs of nearly 9 points for a third of construction workers, mainly worker wages. For example, an employee paid 1,650 euros net monthly would lose 200 euros over a year and the employer would see their charges increase by 1,700 euros on this same salary. The end of the specific standard deduction would represent an increase in costs for the construction industry of more than a billion euros. Between the increase in taxation on non-road diesel and the questioning of the standard deduction, craftsmen and Construction contractors would be required to pay a colossal bill of 1.8 billion euros from the year 2020. This sector is not able to absorb such an increase in charges. The current significant number of construction sites in large cities cannot hide the degraded profitability of construction companies, unfortunately confirmed by credit insurers, INSEE and the Bank of France. VSE-SMEs located in areas rural areas, already affected by the territorial divide, would be the most violently impacted by this decision. The MP recalls that the construction sector has created 50,000 jobs over the last two years and trains nearly 80,000 apprentices. To believe that we could continue on the same momentum over the coming months after such a tax drastic attack is completely illusory. According to these professionals, this could lead to the destruction of more than 30,000 jobs. So, she then asks him why the Government is considering making the same mistakes which, in the name of short-term budgetary decisions, have so often led to a slowdown in activity and job destruction.

Machine translation from French. The official text remains authoritative.

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