$7.6 billion in three months!

$7.6 billion in three months!

What will we put in a music field. Because the controversy over main firms rages on, French shipowner CMA CGM introduced Friday that it posted internet revenue of $7.6 billion within the second quarter, greater than double what it was final yr, whereas that turnover jumped 57% over the course of 1 yr. , to $19.48 billion. Efficiency is stratospheric. On common every single day, the ship proprietor who manages Rodolphe Saadé makes a internet revenue of $84.4 million. Because the starting of the yr, earnings have been tattered with $15 billion, which is roughly the equal over the complete previous yr (17.9 billion). Nevertheless, the group notes a deterioration within the international commerce outlook as a consequence of inflation and particularly larger vitality costs. CMA CGM is benefiting from larger ocean freight charges as a result of chaos in provide chains for the reason that finish of the well being disaster.

In six months, the Marseille-based group could have raised $14.8 billion, after a file $17.9 billion over the entire of 2021. This has earned it a spot, together with vitality firms, amongst potential tax targets on “super-profit firms” demanded by France’s left-wing opposition.

Dialogue about tremendous earnings

Prime Minister Elizabeth Bourne indicated final week that she didn’t shut the door to such taxes, however would like that every firm “be capable to decrease costs to the patron and provides buying energy to their workers”.

CMA CGM has made a number of gestures in latest months, together with an extra discount in its costs on August 1 with a discount in freight charges of €750 per 40-foot container to mainland France and abroad territories, as much as 25% off. Their costs are as a substitute of the five hundred euros that have been beforehand provided. The corporate additionally introduced a €100 discount per 40-foot container for all French exports. It didn’t disclose a brand new measure on Friday.

Already experiencing “congestion affecting port terminals and onshore logistics chains, leading to longer transit occasions for ships,” the group has seen its carried volumes (measured in twenty toes, “twenty toes equal,” the reference unit section) fall by 1.3 %. Yearly, he stated in a press release, yr on yr within the second quarter to five.6 million.

The announcement comes as the controversy over taxing “tremendous earnings” has taken an sudden flip in latest days, with the manager department discovering itself accused of being itself a “tremendous revenue earner” with tax returns better than it had anticipated.

With a name on Friday on BFM TV/RMC, Public Accounts Minister Gabriel Attal was once more compelled to disclaim the existence of “Kitty” throughout the state, whereas accusations of over-enrichment solid a shadow thus far over giant firms similar to TotalEnergies or CMA-CGM.

“There’s extra (tax) income however we’re spending much more to guard, to help the French,” he stated.

State, proprietor of a supernatural revenue?

With excessive inflation in latest months – accelerated by the battle between Russia and Ukraine – and good resistance to employment and development in France, tax receipts are literally fairly dynamic. In a press launch on the state price range state of affairs, the Ministry of Finance additionally indicated, Friday, that by the tip of July 2022, “the (established) internet tax revenues amounted to 172.5 billion euros, in comparison with 144 billion on the finish of July 2021.”

Earnings associated to company tax elevated by about 16 billion euros in a single yr, and revenue from value-added tax elevated by 7.7 billion euros. What helps the thesis of Medef President Geoffroy Roux de Bézieux, who estimated on Monday that “the most important revenue maker is the state”? Not for Gabriel Atal, who takes the instance of a value-added tax on gasoline.

“With the rise in gasoline costs,” the state collected an extra value-added tax from “3 to 4 billion euros.” However the Minister of Public Accounts stated, “We’ve spent 7 billion euros to low cost gas.”

“The state doesn’t get wealthy below the state of affairs, quite the opposite,” he continued, in keeping with feedback made by Elizabeth Bourne. On Monday, the prime minister responded to the Medef chief that “No, (there weren’t) tremendous earnings on the a part of the state”.

Regardless of these denials, over the previous week the federal government has needed to face a critical backlash over a problem that has plagued it since this summer time. Initially, a couple of giant firms with distinctive monetary outcomes have been already within the sights of the left opposition. However as a substitute of taxing them because the opposition calls for, the federal government inspired them to decrease their tariffs, a plea that TotalEnergies and CMA CGM have heard.

“The tax has by no means improved the lives of our residents. Our residents want cash of their pockets, not within the pockets of the state,” Economic system Minister Bruno Le Maire insisted earlier than Parliament in July. After coming back from summer time trip, his streak has not modified and quantity 2 within the authorities is now making foot calls to the banking and insurance coverage sectors to scale back financial institution charges or insurance coverage premiums. However tax supporters didn’t quit.

“We do not need the impression that the tax regulation is ready to distribute (earnings) pretty, particularly since Covid,” Esther Duflo on Friday dominated France Inter. So “an excellent company tax is a very good concept,” continued the 2019 co-winner of the Nobel Prize in Economics.

In Matignon, the tone turned extra conciliatory about such taxes.

“I believe firms will present accountability” by working for the buying energy of the French, Elizabeth Bourne stated Thursday. However, she stated, “if some do not, we’re not closing the door” to extraordinary company taxation.

This query heralds a return to the discussions on the draft price range of 2023, which the federal government is scheduled to current on the finish of this month. MPs from the presidential camp are already calling for a compromise, within the type of a fund to finance the vitality transition fueled by “large enterprise”. An “fascinating” concept by Bruno Le Maire. Promoting it to an opposition bent on negotiating stays pricey to its votes whereas the federal government enjoys solely a relative majority within the Nationwide Meeting.