Question 5849 — value added tax

Summary

Mr. José Gonzalez questions the Minister of the Economy, Finance and Industrial and Digital Sovereignty on the taxation applied to local food products and on the possibility of introducing a reduction in VAT for products from short circuits. Short circuits and local food products represent a growing share of French consumption, keen to favor quality products, environmentally friendly and supporting the local economy. According to the “2022 Barometer of short circuits”, price constitutes the first factor in disaffection with short circuits. Currently, food products benefit from a reduced VAT rate of 5.5%. However, this uniform taxation does not take into account the specificities of local products from short circuits. In March 2023, the Rassemblement National group and its MPs have tabled a bill aimed at experimenting with a VAT exemption for food products marketed in short circuits in rural areas. Faced with the challenges linked to the climate crisis, the increase in raw material costs and the need to promote sustainable agriculture, it would be relevant to consider more tax incentives for local products. One of the solutions would be to introduce a reduction in VAT on food products coming from a radius of 50 kilometers around a municipality. Such a measure would aim to encourage the consumption of local products, reduce the carbon footprint of food products by limiting transport routes and support local farmers and producers in a context of pressure on their margins. Indeed, many actors in the agricultural sector, particularly small producers, find themselves disadvantaged by competition from imported products, often subsidized or less expensive due to their low production and transport costs. A reduction in VAT on local products would restore a certain equity, while promoting the transition towards more environmentally friendly consumption patterns. Also, he wants to know if the Government is considering the implementation of such a measure, aimed at reducing VAT on local food products, and what would be its impact on prices, consumers and producers and, if so, what measures it intends to take.

Machine translation from French. The official text remains authoritative.

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