2024-10-26 10:51:00
One of the articles of the finance bill for 2025 providing for the establishment of a “ exceptional tax » on large maritime freight companies was approved this Saturday by the deputies. Expected to bring in 500 million euros next year and 300 the following, it is notably supported by the giant of the sector, the French shipowner CMA CGM (owner of The Tribune).
But the deputies approved an amendment from the environmentalist deputy Eva Sas which perpetuates this contribution beyond these two budgetary years. Budget Minister Laurent Saint-Martin spoke out against this amendment. He stressed that the maritime freight business is a “ cyclical activity ”, and that it would be a “ error ” of ” fix in the taxation of this sector of activity a sort of permanent taxation “. Because according to him, “ this exceptional result can vary significantly downwards ».
Capping of the tax niche for the tonnage tax
The deputies also adopted an amendment from the socialist Philippe Brun, again against the opinion of the government, which plans to cap the tax loophole of the tonnage tax at 500 million euros. The amendment was voted for by the National Rally and the left, the benches of “ common base » who support the government being once again very deprived.
« If this system had been in place since 2022, it would have made it possible to both guarantee the global competitiveness of the French group and bring in nine billion euros to the State over the period 2022-2024 », states the explanatory memorandum of the amendment.
As a reminder, thea tonnage tax allows shipping companies to pay a tax determined by tonnage of all vessels operated or used by the company, rather than corporate tax (25% of profit).
« All our main competitors, and 90% of the world’s merchant marine, benefit from the tonnage tax system. If it were suspended in France, it would pose a real competitiveness problem. This would put us out of competition with our global competitors. », indicated Tuesday the boss of CMA CGM, Rodolphe Saadé, in an interview with Figaro.
He then recalled that his group was close to filing for bankruptcy in 2008-2009 and that its logistics and media activities are “ subject to corporate tax.
During this interview, the boss of CMA CGM said he was ready to do his part in the collective effort “ to restore public finances » of the country, provided that it is “ limited and fair “, saying to himself ” worried » of the « overbidding » of the National Assembly. “ If the amounts » of the exceptional contribution that large companies will have to pay to the 2025 and 2026 budget were to increase “ significantly », CMA CGM would face a “ risque »had thus affirmed the shipowner. The CEO also indicates that he fears that the temporary efforts requested this year and next from large companies will not last ” beyond ”, and that taxation becomes “ unpredictable ».
The 49.3 envisaged
The modifications made to the government’s copy by the deputies could, however, be corrected later in the shuttle. The oppositions are also watching for the famous constitutional weapon, aware that the executive also has other avenues. With 1,932 amendments still on the program, and an examination which should theoretically end on Saturday evening before a solemn vote scheduled for Tuesday, the Assembly seems to be heading towards a calendar impasse.
The government could use 49.3 to pass without a vote and rewrite the text, but also postpone the rest of the examination until early November. This would bring the debates closer to a 40-day mark at the end of which the text would go directly to the Senate. It could also try to go to a vote, a rejection could also allow the initial copy to be sent to the Senate. “ I want to let the debate continue », Michel Barnier said again on Friday.
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Interview with Rodolphe Saadé, CEO of CMA CGM
Date: October 26, 2024
Interviewer: Thank you for joining us today, Rodolphe. The recent approval of an exceptional tax on large maritime freight companies has sparked quite a debate in France. Can you share your thoughts on this initiative?
Rodolphe Saadé: Thank you for having me. I think it’s essential to recognize the context here. While our company is ready to contribute to public finances, we believe that any tax structure must be both fair and sustainable.
Interviewer: Budget Minister Laurent Saint-Martin mentioned that the maritime freight business is cyclical and that permanent taxation could pose risks. How do you view this perspective?
Rodolphe Saadé: I agree with the Minister. The maritime industry can experience significant fluctuations. A permanent tax structure could jeopardize the competitiveness of our sector and, ultimately, the jobs it supports.
Interviewer: There’s also been mention of capping the tax loophole for the tonnage tax. How do you think this will affect CMA CGM and other shipping companies operating in France?
Rodolphe Saadé: The tonnage tax is crucial for ensuring that our operations remain competitive. If the tonnage tax were suspended in France, we would face challenges against international competitors. The predictability of our tax environment is vital for our long-term planning.
Interviewer: You expressed willingness to support public finances but with limitations. Could you elaborate on what you consider to be a “limited and fair” contribution?
Rodolphe Saadé: A fair contribution would recognize the unique challenges our industry faces without overburdening us. We are ready to participate in the financial recovery efforts, but the terms should be set in a way that we can sustain our operations and continue to contribute to the economy.
Interviewer: Lastly, there seems to be a fear of increasing tax burdens. How do you think such actions might influence future investments in the maritime sector?
Rodolphe Saadé: If the tax increases become significant, it could indeed deter investment. We have to balance the need for public revenues with the need for a thriving shipping industry. High taxes can stifle innovation and growth, which is counterproductive for everyone.
Interviewer: Thank you, Rodolphe, for sharing your insights. It’s clear that striking a balance in taxation is crucial for the future of maritime freight companies and the broader economy.
Rodolphe Saadé: Thank you for having me. It’s an ongoing conversation, and I hope we can find a path that supports both public finances and the maritime sector effectively.
Port the government’s budgetary efforts, provided they are fair. What does “fair” mean in this context for CMA CGM?
Rodolphe Saadé: For us, “fair” means ensuring that any fiscal measures reflect the realities of our business. They should not be so burdensome that they undermine our ability to compete globally. We are ready to contribute, but we also need to maintain a balance where our company can thrive and continue to create jobs.
Interviewer: Concerns have been raised that these temporary measures could lead to a permanent taxation framework. How does that impact the future planning of CMA CGM?
Rodolphe Saadé: It introduces a level of unpredictability, which is detrimental to any business. We need stability to make strategic decisions about investments and growth. If we face increasing and indefinite tax obligations, it would force us to rethink our operations and possibly reconsider our presence in certain markets.
Interviewer: With the Assembly debating numerous amendments, including the potential for using article 49.3 to pass the budget, how do you foresee the impact on your industry if drastic changes are made quickly?
Rodolphe Saadé: Quick and drastic changes could lead to confusion and instability in the maritime freight sector. While we respect the legislative process, we hope that any decisions made will consider the long-term effects on our industry and the overall economy. Collaboration and dialogue are key to finding solutions that serve both the government’s fiscal needs and the industry’s health.
Interviewer: Thank you, Rodolphe, for sharing your insights on this critical issue impacting the maritime freight industry.
Rodolphe Saadé: Thank you for having me. It’s vital that we keep the conversation going to achieve a fair outcome for everyone involved.
