PCIF opposes Government's climate change levy

Citation

Cosslett, K. (1999), "PCIF opposes Government's climate change levy", Circuit World, Vol. 25 No. 4. https://doi.org/10.1108/cw.1999.21725dab.001

PCIF opposes Government's climate change levy

PCIF opposes Government's climate change levy

Keywords: PCIF, Government, Taxation, Environment

Speaking on behalf of the UK's printed circuit board (PCB) and electronic manufacturing services industries, the Printed Circuit Interconnection Federation (PCIF) is voicing its opposition to the Government's proposed climate change levy which, set to generate £1.75 billion in its first year, is due to be introduced in April 2001.

Whilst in no way questioning the validity of the levy's aim of reducing greenhouse gas emissions, the Federation is saying this goal would be better targeted by the Government offering tax concessions on the purchase of energy-efficient machinery than imposing yet another tax burden on industry.

"The UK's PCB and EMS industries operate in a global marketplace and, with typical net profits of between 1 percent (or less) and 5 percent, it is naïve to imagine that companies are not already addressing the efficiency of their operations, including energy use," said PCIF Executive Director, Brian Haken. "To stay competitive, companies in these industries are having to invest 10-12 percent of sales turnover on new capital equipment year-on-year, and with their already tight profit margins under continuing downward pressure, they need the Chancellor's help to meet the Government's environmental guidelines. The last thing they need is to be penalised".

The PCIF also takes the view that further taxation will force EMS companies offshore. Should this occur, then it will be only a matter of time before their OEM customers follow suit.