“Why the State is financing its budget less and less with VAT revenue”

For his 70^e anniversary, the value added tax, this French invention from 1954 which conquered the world with the exception of the United States, is more than ever in the spotlight. That VAT revenues were lower than expected – 176.9 billion euros in 2024, according to the latest estimates from Bercy, instead of the 184.2 billion hoped for a year ago -, and the entire policy of previous government finds itself pilloried.

Beyond this unfortunate forecast accident, another phenomenon is emerging, less publicized but just as controversial: the State is financing its budget less and less with revenue from this tax. The latter, it should be remembered, are collected in proportion to sales by companies which pay them each month to the State. The harvest should therefore reach 176.9 billion this year, but only 96 billion will contribute to financing the state budget, we read in the 2025 finance bill which is…