A new barometer from the Institute Montaigne and the Mazars firm reveals the weight of production taxes on the GDP of European countries. In France, they are around 100 billion euros, and weigh 4.4%.
Production taxes once again invite themselves into the heart of the tax debate of the presidential campaign. The government reduced the bill for 10 billion euros under the Recovery plan. Less than two months before the first round of the presidential election, all the candidates are going ahead with their proposal to lower these taxes even further, which for many people harm the competitiveness of French companies and encourage relocation.
The Institut Montaigne, a French think tank close to business leaders, and the Mazars firm unveil an unprecedented barometer of production taxes in Europe. The goal: to be more precise than Eurostat, the statistical office of the European Union by dismissing the taxes which actually weigh on households, and by reintegrating others.
4.4% of French GDP
According to this barometer, France is still among the countries with the highest taxes on production. In absolute value, our country is even in the lead with production taxes amounting to more than 100 billion euros, more than four times more than in Germany and twice as much as in Italy. The estimate is lower than that of Eurostat, whose calculation set them at 120 billion euros.
By calculating the weight of these production taxes on GDP, France comes in second place (4.4% of GDP in 2020), just behind Sweden (10.3%). In the nine other countries, their weight does not exceed 2.5%.
Overall, the Institut Montaigne barometer reassesses the weight of these taxes on the GDP of European countries downwards compared to Eurostat, with significant disparities for some, sometimes ranging from simple to double as for Poland and Belgium.
The production tax is a compulsory levy due on the occasion of the production, import, sale of goods and services. The VAT, paid by the consumer, the territorial economic contribution, the property tax or the payroll tax are production taxes.
These taxes, which bring nearly 75 billion euros to the French State and local authorities each year, are often considered unfair because they do not weigh on the profit generated by the company. They have to pay it before they even earn money.
The Medef and the representatives of the largest companies in France receive this Monday six candidates for the presidential election, for major oral broadcasts live on BFM Business. The reduction in production taxes will be discussed with the candidates.
The Medef and France Industrie, which represents 29 sectors of the sector, are calling for a further reduction of 35 billion euros to reindustrialize the country. Among the candidates who declared themselves in favor of their reduction: Valerie Pécresse, Marine Le Pen, Eric Zemmour and Yannick Jadot. Anne Hidalgo is opposed to it, but promises not to increase them.