The government would have a hidden project: to increase the VAT. This is the campaign argument repeated over and over by the Nupes since the evening of the first round of the legislative elections. In his speech, on Sunday June 12, the leader of France Insoumise, Jean-Luc Mélenchon estimated that Emmanuel Macron had “disastrous projects”and in particular that of achieving 80 billion euros in savings. “It is not only this project that must be rejected, but the one that goes with it, which is that of an increased VAT which would make it possible to finance this project”launched the Insoumis.
Break next Sunday to reject the disastrous projects of Mr. #Macron.
Rush with your ballots to end 30 years of neoliberalism.#NUPES #Legislative2022 #VlikeVictory pic.twitter.com/hxd9PTZQ7V
— Jean-Luc Melenchon (@JLMelenchon) June 12, 2022
The Minister of Economy Bruno le Maire nevertheless denounces a “fake news”. Asked about the TV and radio sets, the minister denies on all counts. “We have no intention of raising VAT and we will not raise VAT”he notably swore on Tuesday June 14 on the set of BFM TV.
Playing in full inflation with the fear of the French by making them believe that the government has a hidden plan to increase the VAT, it is revolting, sad and unworthy.
This kind of remark is similar to what is a trait of this political family: conspiracy. pic.twitter.com/Us0SFNqwJ0— Bruno Le Maire (@BrunoLeMaire) June 14, 2022
On the Nupes side, it is assured that this project is part of the stability program sent to the European Commission in 2021. In this program, France plans to reduce its public deficit – established in 2021 at 160 billion euros – under the threshold of 3% of GDP by 2027, whereas it currently represents 6.5% of GDP. It is this financial effort that would represent 80 billion euros in savings to be made according to Nupes. Except that this estimate does not appear anywhere as is in this roadmap and rather corresponds to a “house calculation” of the left alliance.
Nor does this program indicate that France plans to increase VAT to achieve this objective. Asked Monday, June 13 on franceinfo, the socialist Olivier Faure suggested that information had come directly to them. Contacted by franceinfo, Olivier Faure maintains that these are “information from senior Bercy officials”. For its part, the communication from the Ministry of the Economy is limited to repeating the message hammered home by the minister: it would be a “lying”.
“We have information that leads us to believe that there is a project to increase a share of VAT“ announces @faureolivierFirst Secretary of the @Socialist Partyabout the financing of Macron’s budget.
▶ #Les4V @Caroline_Roux pic.twitter.com/tL2RzXaytt
– Info France 2 (@infofrance2) June 13, 2022
And it is no coincidence that tension is mounting around this subject. VAT is often considered an “unfair” tax that affects all French people but pays off big. VAT represents the State’s largest tax revenue: 97.5 billion euros in the 2022 finance bill, i.e. almost a third of net tax revenue.