BFC steps up campaign for consumption tax to reduce furniture manufacturers' costs

5th October 2009 | trade | The British Furniture Confederation (BFC) is calling on the Government to introduce a consumption tax to lower costs throughout the furniture supply chain.

The trade collective, led by executives from associations including BFM, FIRA, NBF and BCFA, has made its submission to the Treasury's Pre-Budget Report consultation, along with a request to consider a time extension to the Trade Credit Insurance top-up scheme.

BFC officials say a consumption tax could benefit everyone by removing social security charges and related taxes paid at the point of manufacture and replacing them with a rise in VAT for labour intensive products at the point of sale.

The result, it says, would be a reduction in labour costs that are constantly scaled up through the supply chain from factory to showroom, a lower final sale price, but a constant level of tax for the Exchequer.

The Chancellor will make his Pre-Budget Report speech at the end of November.