A “green VAT” at a reduced rate claimed by around sixty business leaders

A forum published in “Le Journal du Dimanche” proposes to include a reduced taxation on the products which reflect an ecological responsibility in the finance bill 2023.

Le Monde

Only one measure, to solve three problems: purchasing power, business support and ecological transition. This is how sixty business leaders, including many young shoots, present their suggestion of “green VAT”, in a column published on October 9 in The Journal du Dimanche .

They propose to “apply a reduced VAT rate to ecologically responsible products in order to relieve the household portfolio”. They would like this measure to be adopted as part of the examination of the 2023 finance bill, which begins Monday in the National Assembly, but which could also be “the subject of new negotiations at European level”.

Among the signatories, from numerous start-ups in tech or sustainability areas, are those responsible for the Impact France movement, Camif, Back Market, Blablacar, Yuka, van, from Collective and Biocoop wardrobe.

“It is no longer possible to submit to the same tax rules that aggravate the environmental crisis and those who do everything to provide solutions. We also think that it is urgent to encourage citizens to turn Collectively towards virtuous goods and services by making them identifiable and accessible for all “, specifies La Tribune.

reduced rates for essential products

In France, value added tax (VAT) is the main source of tax revenue. Its normal rate is set at 20 % for the majority of products and services. However, there are exceptions:

  • Its intermediate rate is set at 10 %, for catering, passenger transport, certain camping housing services, etc. ;
  • Its reduced rate is 5.5 %, mainly food products, books on any support, gas and electricity subscriptions, etc. ;
  • Its super reduced rate is 2.1 %, among other things for medicines repayable by social security as well as certain press publications.

VAT modulation on environmental criteria is a lever regularly offered by economists. For example, she appeared in the program of several left -wing candidates for the presidential election.

The signatories believe that “if a modulation of VAT were to be rejected by the government due to legal or budgetary constraints, it is essential that we were instituting new tax rules directly linked to business commitments” as quickly as possible.

“A modulation of 10 % to 5.5 % could also be implemented according to the social commitments of the company inherent in the design of the product or service”, they propose, before committing ” that this drop in VAT does not generate a margin increase for [their] companies, but concrete social repercussions “.

/Media reports.