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France Proposes €1.1 Billion CVAE Cut in 2026 With Conditional Phaseout Plan

Officials frame the change as support for producing in France.

Overview

  • Prime Minister Sébastien Lecornu’s budget includes a €1.1 billion reduction of the CVAE production tax starting in 2026.
  • The government signals a progressive elimination within three years if public finances permit, presenting the step as contingent rather than guaranteed.
  • About 300,000 companies would benefit, with roughly three quarters being SMEs and mid-sized firms in industrial sectors.
  • The measure carries an estimated €1.1 billion cost to public finances in 2026, according to the prime minister’s office.
  • The proposal is an initial position that Parliament can amend or drop during the autumn budget process, following delays to the previously promised full repeal after half the levy was removed in 2023.