The Minister of Budget and Public Accounts Laurent Saint-Martin rejected this Sunday the proposal from the president of Medef, who would like to increase VAT in exchange for a reduction in contributions on salaries.
“We will not make all French people pay for this increase in the debt burden.” The Minister of Budget and Public Accounts Laurent Saint-Martin closed the door to the proposal “Social VAT” formulated this Sunday, November 17 by the boss of Medef. Patrick Martin proposed in The Parisian to reduce contributions on salaries while increasing the VAT rate by one point – except on essential products – to replenish state coffers while supporting employment.
An unacceptable track for Laurent Saint-Martin, who recalled on LCI that “the promise of this budget [2025]is that the increased compulsory deductions must be targeted, exceptional, temporary”. He believes that an increase in VAT would be passed on to prices by manufacturers and would penalize all consumers. Government spokesperson Maud Bregeon had already closed the door on Friday to a similar proposal from senators who called for a 22% VAT.
Businesses must contribute
“Our country is facing a situation for its public finances that is urgent”insisted the minister, who recognized that the moment is “complex and difficult”. He has However estimated that businesses should contribute to the budgetary effort, even if two-thirds of it already involves a reduction in public spending. “Our companies do not want a country that does not know how to reduce its public deficit”launched Laurent Saint-Martin, recalling that “Patrick Martin himself said a few weeks ago that businesses must contribute ».
Patrick Martin tackled a budget this Sunday that he considers “recessive”believing that the“balance of efforts” promised by the government is not respected. “Between tax increases and job creation, we have to choose”launched the leader of the employers' organization, comparing the “tax surcharge” on large companies in France with “the reduction to 20% of the corporate tax rate” announced by US President-elect Donald Trump, who he fears could “digging the ditch” with the United States.
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