Alexandre Bompard Rejects Social VAT Proposal, Calls for Fairer Economic Measures – ISN Reveal By Riad Beladi – Editor: James Taylor At the Rencontres Économiques d’Aix-en-Provence 2025, Alexandre Bompard, President and CEO of Carrefour Group, made a strong public stand against the introduction of a so-called “social VAT” – a proposal recently floated by the MEDEF president, Patrick Martin. Labelled by Bompard as the most unjust tax, the idea has reignited national debate over France’s fiscal model, consumer purchasing power, and social equity. Bompard’s intervention came during a panel discussion centred on competitiveness, value creation and the sharing of wealth. While Patrick Martin defended the idea of increasing VAT as a way to reduce social charges and support job creation, Bompard pushed back sharply. “The social VAT is the most unjust of taxes. It penalises low-income households disproportionately,” said Bompard. This view aligns with recent polling and economic studies which show a majority of French citizens are strongly opposed to any rise in VAT, particularly as food inflation continues to bite. Over 51% of French respondents consider VAT one of the most regressive forms of taxation. Bompard’s remarks reflect broader concerns within the retail sector. In a televised interview on BFM Business (2 July 2025), he warned that although prices may have stabilised, they remain 20% higher than in 2021, leading to what he termed a shock of hyperinflation. “We see it in the shopping baskets – consumers are removing essentials. The average trolley has dropped from 14 to 11 items.” Despite efforts to support purchasing power, Carrefour continues to witness reduced demand for fresh, organic, and premium products, a trend mirrored across France’s supermarket aisles. He explained that Carrefour has adapted by lowering prices and rethinking product ranges in response to consumer demand. Bompard said inflation remains his top concern and that it must be tackled with fairness and pragmatism. In our previous meeting, Alexandre Bompard consistently highlighted the threat inflation poses to household budgets and made clear that restoring buying power is his personal and professional mission. Rather than relying on increased taxation, Bompard has outlined a series of proactive measures through Carrefour’s ‘Act for Food’ programme: a €100 million investment to make organic food more affordable, the removal of “best before” dates on 500 dry goods to combat food waste, and strengthened price monitoring and supplier negotiations to hold the line on inflation. These policies, he says, reflect a more ethical and socially just path forward – helping families eat better without taxing them more. Bompard also criticised France’s corporate tax burden, noting that 67% of profits generated in France are taxed. He described the environment as confiscatory, urging policymakers to consider how fiscal pressure is impacting both consumer confidence and national competitiveness. He further pointed out a worrying statistic: more than 50,000 companies, many of them French suppliers, have closed in recent years due to the influx of cheaper imports that undercut domestic producers. This, he warned, is not just a question of economics but of national resilience, as entire local supply chains are being dismantled. His remarks echo broader frustrations across the French business landscape, as companies face increasing levies amid sluggish growth. Bompard’s position against a rise in VAT finds strong support among the French public and across the political spectrum. Left-leaning parties have already declared the VAT idea scandalous, and government ministers, including the Minister of Public Accounts, have officially ruled out its implementation. According to the latest INSEE data, raising VAT by just three points would reduce overall household purchasing power by 0.6%, with the poorest households impacted the most. Alexandre Bompard, more than a retail executive, is increasingly positioning himself as a voice for fairness in France’s economic debate. As President of both Carrefour and the Fédération du Commerce et de la Distribution, his rejection of the social VAT model and his push for practical, consumer-friendly initiatives offer a grounded alternative to policies seen as punitive and ineffective. In a climate of economic uncertainty and rising public dissatisfaction, his message is clear: “Don’t tax families more – help them live better.”