After the concerns expressed by the FFB about the abolition of the 10% VAT for non-energy renovation work on housing, two other federations have expressed their doubts about this measure. Through a press release, the CAPEB and the FDMC denounced a counter-productive and dangerous proposal, both for professionals in the sector and for the wallets of the French.
The proposal to abolish VAT at 10% for non-energy renovation work on housing has made two new enemies. After the French Building Federation (FFB), the Confederation of Crafts and Small Building Companies (CAPEB) and the Federation of Building Materials Distributors (FDMC) in turn called on the government not to modify the rate VAT at 10% for the renovation of dwellings over two years old.
This measure, if adopted, would have harmful repercussions on the National Accounts “, according to CAPEB, which also recalls the strong impact of inflation on the portfolio of the French. However, reduced-rate VAT must above all benefit households, and therefore appears all the more necessary to preserve their purchasing power.
Businesses also impacted
The concern does not only concern the finances of the French. The entry into force of a VAT at a full rate of 20% for this type of work would also have repercussions on the activity of construction companies, ” who have already experienced a decline in their activity for a year (-0.5% in the last quarter of 2023)” as CAPEB reminds us.
In addition, if the government decides to listen to the recommendations of the General Inspectorate of Finance, this could lead to an inability for France to achieve its objectives in terms of housing supply, again according to CAPEB.
The employers’ organization recalls that energy renovation work and other renovation work, in particular induced work, are inseparably linked “. It is in this sense that CAPEB is calling for the extension of the reduced rate of VAT to 5.5% to all renovation work, whatever it may be.
Same story on the side of the FDMC, which through its president, is worried about a measure that could greatly affect the activity of building materials distributors, and professionals in the sector as a whole. ” Construction as a whole is now showing unity in the face of a global slowdown. In this context, the government must send a signal of support and sustainability to the sector and its companies. “said Marie Arnout, president of the FDMC, in a press release.
Jeremy Leduc
Front cover photo: ©Adobe Stock
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