ought to the dock dues be eliminated? | EUROtoday

Ekeep away from a fireplace. Already three folks have died because the begin of the violence in Martinique. These started in the beginning of September with the mobilization of the inhabitants to specific their fed up with the excessive value of dwelling. According to an INSEE examine printed in July 2023, meals merchandise are 40% dearer in Martinique than in mainland France.

While the curfew has been prolonged till October 21, state providers, native authorities and financial actors are looking for a response to the calls for of the RPPRAC collective (Rally for the Protection of Afro Peoples and Resources). -Caribbean), on the origin of the primary mobilizations, who need costs to be aligned with these of mainland France.

Six spherical tables have already been organized between all events, with out resulting in a constructive end result. Scheduled for this Tuesday, the seventh will finally not happen, for lack of “new concrete and viable proposal”, indicated, Monday October 14, the president of the chief council of Martinique Serge Letchimy.

Among the avenues explored to discover a resolution is a reform of the dock dues system, accused of accelerating the price of native dwelling.

What is dock dues?

The dock dues are made up of 4 distinct taxes, in drive in Martinique, Guadeloupe and Guyana, Reunion Island and Mayotte. The historic tax – which dates again to the reign of Louis XIV –, at this time known as “external” sea dues, considerations imported items – together with these from mainland France. The “internal” dock dues, added extra just lately, concern native manufacturing past the brink of 550,000 euros in turnover. Less than a thousand abroad firms per yr are liable.

In addition, abroad areas have the potential for deciding on a “dock dues differential” relevant to imported items, in comparison with the identical items produced regionally, with a view to offsetting the extra prices of native manufacturing.

ALSO READ Budget 2025: what if we abolished the SGPE? Around 15,000 merchandise are affected. Rates range, and may rise, in some instances, as much as 90%. Initially, the target of this technique was to present fiscal autonomy to abroad municipalities and areas. Today, dock dues signify 32% of municipal assets.

More just lately, with the intention to justify what constitutes an exception to the customs guidelines of the European Union, the target of defending native manufacturing was added. Indeed, native companies endure from a scarcity of competitiveness resulting from structural handicaps to financial improvement. In explicit the space from the remainder of the only European market, and the proximity to nations the place the price of labor is decrease. The dock dues are alleged to fill the competitiveness hole of native companies.

A system that will increase the price of native dwelling

Many elements clarify the excessive value of dwelling in Overseas Territories, together with the price of freight, the margins of importers and distributors, the consequences of further remuneration for public officers, and so forth. Dock dues would contribute to this extra value in a proportion that’s “difficult to quantify”, which might be between “4 and 10%”, estimates the Court of Auditors, in a report printed in March. However, what’s the relevance of together with, within the checklist of products involved, fundamental requirements which might be not often, if in any respect, produced regionally?

ALSO READ Budget 2025: what if we abolished… the CeseHouseholds usually are not the one ones to endure the consequences of this tax. Public providers, which have paid 159 million euros since 2017 for imported items, are additionally affected. “This burden particularly weighed on the budgets of hospital structures, already financially fragile, and, ultimately, on Health Insurance,” notes the Court. It additionally affected state administrations, for the importation of kit meant for protection and inhabitants safety missions or border surveillance. »

A device that doesn’t strengthen the competitiveness of companies

Although dock dues do improve the price of imported merchandise, they’re however “not designed as a tool to strengthen the competitiveness of businesses and their exports”, notes the Court. On the opposite, because the checklist of merchandise involved evolves recurrently and the charges utilized additionally change often, “the development of a multi-year economic model is, for companies, complex, even random”.

This tends to favor current firms, which have mastered regional procedures. Local competitors is lowered. Result: costs for native customers usually are not pushed down by an impact of financial competitors, and native manufacturing doesn’t soak up their competitiveness deficit.

In addition, tax revenues from dock dues are primarily allotted to municipal working bills, comprising between 43% and 57% personnel bills. They are little or no allotted to funding expenditure, which is however elementary for financial improvement.

Should the dock dues be abolished?

The Court urges at a minimal to reform the dock dues system, however requires an influence examine to be carried out on the alternative of this tax with a regional VAT. Local political leaders don’t make the abolition of dock dues an finish in itself.

For the mayor of Fort-de-France, Didier Laguerre, there will be no query of changing it with an allocation, funded by a VAT levy or different, as a result of “this would ultimately lead to a loss of financial autonomy of the communities,” explained the councilor in March to the senatorial delegation to Overseas.

ALSO READ Tax niches: when the overseas aid tap flows freelyOf the 200 million euros in Fort-de-France’s budget, dock dues represent revenue of 41 million euros, “which can’t be topic to successive authorities needs to cut back state prices.” », underlines Didier Laguerre. Clearly, not like the dock dues, a state allocation would rely every year on the goodwill of the federal government.

Furthermore, the elimination of the dock dues wouldn’t essentially resolve the issue: “We fear,” summarizes Didier Laguerre, “that by changing the dock dues with a grant paid to communities, the discount in the price of items [importées] is obscured by a rise within the margins of financial actors [les distributeurs, NDLR]. »