Will the circular economy get a new boost from the government? The Minister of Ecological Transition Christophe Béchu on Wednesday deemed the possibility of a reduction in VAT on repair services “promising”, after a report defending this idea.
In it, Emmanuelle Ledoux, general director of the National Institute of the Circular Economy, and Emery Jacquillat, president of Camif, propose to lower, “from the finance law a VAT to 5.5% on repair operations for household appliances, shoes and leather articles and clothing and household linen”. Christophe Béchu for his part estimated that this avenue “would support the emergence of a true French repair sector throughout the national territory”. “I want it to be thorough,” he said.
A reduction to support independent repairers
For the authors of the report, such a reduced “circular VAT” would above all support independent repairers, faced with “administrative difficulties” to “be eligible for the repair bonus recently introduced”.
The “repair bonus” for clothing and shoes was launched at the beginning of November, like that for household appliances. Consumers can drop off their clothes and shoes with 600 certified repairers throughout the national territory, a list of which they will find on bonusreparation.fr. A discount will then automatically be made on the price of the repair – for example 7 euros for a hole, tear or tear in clothing or 25 euros to resole leather shoes.
The report in favor of an extension of reduced VAT
“Without this solid foundation that constitutes circular VAT, the other measures implemented such as the repair bonus and the repairability index will only have a superficial impact on the economic activity of repairers,” notes the report submitted Tuesday to minister.
The authors also suggest “ultimately” extending the reduced VAT to “other repair sectors”, citing in particular “furniture or tools”, “eco-designed manufactured products” from “one year after the implementation of environmental labeling for a given sector” and reconditioned products “in the longer term”.