It took perseverance. After a standoff with the government, UMP deputies finally voted against their amendments, which had the support of other groups. The crucial issue was to ensure that local authorities revenue sufficient substitute. Thus, the principle of territoriality of the reassessment will be implemented and communities benefit directly from taxes paid by businesses in their territory.

The day before, the UMP deputies gave up back on the exemption of TP in firms with less than 500,000 euros of turnover. One of the rejected amendments included in effect of exempting TP businesses up 152,000 euros of turnover, instead of 500,000 euros, as desired by the government.In counterpart, Christine Lagarde had to remove the two amendments that were presented in the draft budget law to establish a "national equalization" of the new contribution.

Debate November 19

In summary, the economic contribution territorial (CET) will replace the business tax. It will consist of an assessment of local activity (professional land) and a supplementary contribution to the value-added businesses. As proposed by Gilles Carrez, the supplementary contribution will be allocated to the communes and inter-municipal, or 2.3 billion euros of contributions.The debate on the base of the supplementary contribution will continue in the Senate.

But all fears were not lifted so far, including the Association of Regions of France (ARF) which considers that the regions are excluded from political debate on local taxes. "The draft 2010 budget law removes the regional tax base built property tax, only regional tax in connection with the household," says the ARF in a statement. The Association of Small Cities France (VFPA) also announced Friday it would intervene with the Senate on the removal of business tax (TP), after the rejection by MPs of amendments prepared by the Finance Committee of House. The debate should be further pursued in the Senate from November 19, then joint commission.

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