Chinese tax boost could bring down the cost of importing furniture

15th June 2009 | imports | Chinese legislators have raised tax rebates for furniture manufacturers in a bid to boost exports.

The Government will now allow manufacturers to take advantage of a 15% VAT rebate, which should make importing goods from China cheaper. The move is aimed to ease the pressure on Chinese producers who have suffered from softened demand for furniture, but will also be good news for British furniture importers who have seen the cost of goods rising in recent months following unfavourable exchange rates.

To date the price hikes have been tempered by lower transport costs, but as empty ships are taken out of the line the cost of bringing goods to Europe could be set to rise again.

The latest Government figures shows Chinese exports have dropped 22.6% compared to the same period last year.