Business

7.6 billion dollars in three months!

What put a token in the jukebox. Amid debate over company superprofits, French shipowner CMA CGM introduced on Friday that it posted a internet revenue of $7.6 billion in the second quarter, a number of occasions greater than final 12 months, when turnover jumped 57% in a 12 months to 19.48. Billion greenback efficiency is stratospheric. On a mean day, the ship proprietor managed by Rodolphe Sade earns a internet revenue of $84.4 million. Since the start of the 12 months, earnings have flirted with 15 billion dollars, which is sort of equal to the entire interval final 12 months (17.9 billion). However, the group reported a worsening world commerce outlook attributable to rising inflation and power costs in explicit. CMA CGM has been benefiting from surging ocean freight charges attributable to provide chain mismanagement for the reason that finish of the well being disaster.

In six months, the Marseille-based group will earn 14.8 billion dollars, after a report 17.9 billion all through 2021. It has earned a spot alongside power firms amongst potential tax targets on “extra earnings”. , claimed by France’s left opposition.

Controversy over superprofits

Prime Minister Elizabeth Bourne indicated final week that she had not closed the door to such a tax, however that she most popular that each firm might “decrease costs for the buyer and provides buying energy to its workers”.

CMA CGM has made a number of gestures in latest months, together with a discount in freight charges to mainland France and abroad territories from August 1 to 750 euros per 40-foot container, with additional reductions in its charges, ie as much as 25%. Its value, as an alternative of the five hundred euros beforehand supplied. The firm introduced a discount of 100 euros per 40-foot container for all French exports. He didn’t launch a brand new measure on Friday.

Already affected by “congestion affecting port terminals and land logistics chains, ensuing in lengthy transit occasions for ships”, the group noticed its quantity transported (measured in TEU, “twenty-foot equal”, reference unit sector) in the course of the 12 months 5.6 million in the second quarter, down 1.3% year-over-year, he mentioned in an announcement.

The announcement comes as the talk over the taxation of “extreme” has taken an sudden flip in latest days, with the chief accusing himself of “extreme” by accumulating extra tax income than he anticipated.

Invited to BFM TV/RMC on Friday, Public Accounts Minister Gabriel Attal as soon as once more needed to deny the existence of a “kitty” inside the state, whereas accusations of over-enrichment on massive firms similar to TotalEnergies or CMA have to date weighed. -CGM.

“There is extra (tax) income however we spend an excessive amount of to guard, to assist the French”, he hammered.

The state, a superprofiteer?

With excessive inflation in latest months – fueled by the battle between Russia and Ukraine – and good resistance to employment and progress in France, tax receipts are literally very buoyant. In a press launch on the state’s price range state of affairs, the finance ministry additionally indicated on Friday that on the finish of July 2022, “internet tax income (established) is 172.5 billion euros in opposition to 144, 1 billion on the finish of July 2021”.

Revenues associated to company tax elevated by round 16 billion euros in a 12 months, and income from VAT elevated by 7.7 billion. What acknowledges the thesis of the boss of Medef Geoffroy Roux de Bézieux, who speculated on Monday that “the largest superprofiter is the state”? Not for Gabriel Attal, who takes the instance of VAT on gasoline.

“With the rise in petrol costs”, the state obtained “3 to 4 billion euros” in extra VAT. But “we spent 7 billion euros on gas concessions”, argued the Public Accounts Minister.

“The state isn’t wealthy in circumstances, quite the opposite”, he continued, in line with the feedback already made by Elizabeth Bourne. On Monday, Prime Minister Medvedev replied to the president that “no, there isn’t a tremendous revenue for the state”.

Despite these denials, final week the federal government confronted a harmful backlash over a problem that has plagued it since this summer time. Basically, it was actually just some massive firms with distinctive monetary outcomes that had been in the sights of the Left opposition. But as an alternative of taxing them because the opposition has demanded, the federal government has inspired them to scale back tariffs, a plea heard by TotalEnergies and CMA CGM.

“A tax has by no means improved the lives of our countrymen. Our compatriots want cash in their pockets, not in the pockets of the state”, confused Economy Minister Bruno Le Maire earlier than Parliament in July. Back from the summer time break, his line hasn’t modified and the federal government’s quantity 2 is now calling the banking and insurance coverage sectors to chop financial institution prices or insurance coverage premiums. But supporters of a tax haven’t given up.

“We haven’t got the concept that the tax code is ready to distribute (earnings) pretty, particularly since Covid”, judged France Inter’s Esther Duflo on Friday. So “a tax on extra earnings is a extremely good concept,” continued the co-winner of the 2019 Nobel Prize in Economics.

At Matignon, the tone grew to become somewhat extra conciliatory concerning such taxes.

“I believe the businesses that may present duty” work for the buying energy of the French, Elizabeth Bourne speculated on Thursday. But “if some do not do it, we’re not closing the door on distinctive taxation of extra earnings”, he mentioned.

The query guarantees to return to debate on the 2023 draft price range, which the federal government should current on the finish of the month. Deputies in the presidential camp are already urging a compromise in the type of a fund to finance power transition fed by “overprofitable” firms. An “attention-grabbing” concept for Bruno Le Maire. It stays to be bought to the opposition, decided to discount for his or her votes whereas the federal government solely has a relative majority in the National Assembly.