The Court of Auditors recommends a “profound reform” of the dock dues, the tax which funds abroad native authorities | EUROtoday

The goal is obvious: France should be capable of emerge with its head held excessive from a dreaded assembly, set for the top of 2027 earlier than the European Commission. Brussels dangers torpedoing the dock dues, a customs obligation on imported merchandise inherited from the seventeenth^e century, nonetheless in pressure within the abroad departments. Regarding this French exception to free competitors, supposed to guard native economies, the Court of Auditors demanded, Tuesday March 5, by its first president, Pierre Moscovici, a “deep, systemic, managed and naturally concerted reform”.

With 1.6 billion euros collected in 2022, the tax represents a significant income and rising sharply since 2014 for abroad communities – 32% of their general sources and as much as 57% of municipal working bills. But at this time it’s accused of accelerating the price of dwelling. The authorities wish to change it with a regional VAT, asserting a speedy reform “for the 2025 finance bill”which arouses sturdy opposition from abroad elected officers.

Considered a “breakup scenario”the substitute of dock dues by VAT is dominated out by the Court, in a report revealed Tuesday, for “his extreme sensitivity” coverage. In unison, the leaders of the communities of Mayotte, Guyana, Guadeloupe, Martinique and Reunion rejected this concept on February 14, earlier than the abroad delegation of the National Assembly. “The dock dues are the last element of our fiscal autonomy”stated Patrick Lebreton, vice-president of the Reunion govt. ” VAT ? We know very well that, when a recipe goes to Bercy, the return home is much more difficult. We will not be compensated. We do not understand this rush to reform in 2024.”

Capping the tax sustainably

The Court of Auditors carried out an overall assessment of the dock dues, removing all defects: “lack of leadership” by the state, “excessive complexity” and “instability” rates affecting products, “low transparency”, “undetectable economic impacts”. According to Mr. Moscovici, “it favors companies already in place which master the system, and does not promote competition”. As for the fiscal autonomy of communities, it is considered ” sturdy “ for the areas, however “non-existent” for the municipalities which nonetheless profit from three quarters of the tax income. Municipalities “decide neither on the base, nor on the rates, nor on the exemptions, nor on the criteria for distributing the resource”specifies the report of the excessive monetary courtroom.

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