Senators approved, on December 15, the acceleration of the suppression of the business value-added contribution (CVAE), a measure demanded by business organizations to boost industrial competitiveness. This decision, included in the 2026 finance bill, raises questions about its budgetary and territorial impacts, according to economists Nadine Levratto and Philippe Poinsot. Despite a 75% reduction in 2021, effects on employment and investment remain limited.
As part of the 2026 finance bill, senators validated on Monday, December 15, the acceleration of the business value-added contribution (CVAE) suppression timeline. Created in 2010 to replace the professional tax, this levy affects less than 10% of companies, mainly large groups and intermediate-sized enterprises (ETI). The 2021 reform had already lightened this tax by 75%, leading to an annual yield loss of about 7.5 billion euros for public finances, amid efforts to combat the deficit.
However, post-reform evaluations show few concrete effects on employment, investment, or international competitiveness—a project paused by the Covid-19 crisis and now resumed. Economists Nadine Levratto and Philippe Poinsot, in an op-ed in « Le Monde », highlight that this measure, presented as industrial support, mainly benefits other sectors. Industry captured around 20% of the tax gains, double its share in national value added, while nearly 80% of the benefits go to financial activities, insurance, and energy producers.
This distribution reveals an inconsistency: it favors metropolises, where industry is less present, to the detriment of rural areas targeted by reindustrialization goals. The authors question the remaining incentives for local authorities to host industrial projects if they generate fewer significant fiscal returns. Ultimately, this supply-side policy, focused on lowering production costs, could widen territorial inequalities without truly revitalizing the local economy.
