July 17, 2020 / 8:02 AM / 25 days ago

French business tax cut amounts to annual 10 billion euros, not 20 billion - minister

FILE PHOTO: Bruno Le Maire, French Minister of the Economy, Finance, and Recovery, wearing a protective face mask, is seen before the speech of French Prime Minister Jean Castex to unveil the new government policy at the National Assembly in Paris, France, July 15, 2020. REUTERS/Gonzalo Fuentes

PARIS (Reuters) - The French government will cut the annual taxes companies have to pay in addition to normal corporate income tax by 10 billion euros (£9.09 billion), not 20 billion, a minister said on Friday.

The cuts are designed to encourage firms to produce in France.

Finance Minister Bruno Le Maire said on Wednesday that a cut of 10 billion euros next year would be followed by another cut of 10 billion in 2022, for a cumulative annual reduction of 20 billion euros.

But Industry Minister Agnès Pannier-Runacher told the radio station BFM Business that the recurring annual decrease from 2021 onwards would be 10 billion euros.

“It’s a 10 billion decrease, and it’s a massive decrease for companies,” she said.

This brings the planned support for domestic industry and services to 30 billion euros, not 40 billion euros as announced on Wednesday by the new prime minister, Jean Castex, Pannier-Runacher added.

Reporting by Mathieu Rosemain and Bertrand Boucey; Editing by Kevin Liffey

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