France unveils €2.5bn plan to boost business investment

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French prime minister Manuel Valls has announced that the French government will allocate €2.5bn over five years for tax rebates in order to boost business activity in France.

French firms will benefit from those tax rebates on their investments, the prime minister Valls. Among the measures, one aims to stimulate companies to make investments in a very short time into boosting the yield of their investments.

The measure will allow companies to write down 140% of the value of their industrial investments they will make between now and April 2016 when paying taxes. For French firms, depreciation of their investments can be deducted from their tax base to reduce their taxes.

The French government will also offer the possibility of creating new life insurance products invested in companies’ capital.

The amount of the development loans proposed by the French public investment bank, Banque Publique d’Investissement (BPI) will pass from €6bn to €8bn.

Some tax rebates on housing works will be extended and the government will reimburse more quickly sales tax paid (TVA) to local authorities on their public works investments.

Valls also announced that a deal has been struck with motorway operators. A €3.2bn road investment plan will be unlocked.



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