France’s textile industry has to deal with higher production costs that have significantly increased in the last few years despite recent decisions that have attempted to reduce labor costs (CICE – tax credit for competitivity and employment, Responsibility Pact …) :
- salary charges for employers are among the highest in the European Union with a large part of social contributions dedicated to financing social protection (see the Werner International graphic chart in annex),
- production taxes, including local taxes, have been constantly increasing despite the reform of the professional tax,
- in energy costs, for gas, a carbon tax in the TICGN (tax on natural gas consumption) is continually increasing
- for electricity the Contribution to the Public Electricity Service has quadrupled in 4 years. This tax payment introduced in 2003 and paid by all electricity consumers has been rapidly increasing (4,50 €/MWh in 2010, 16,5/MWh in 2014), this fact has less tolerated by textile companies since most did not benefit from the 0,5% Added Value ceiling since they consumed less than 7GWh. The UIT welcomes the recent removal of this threshold of 7GWh.
Alongside the GFI (group of industry federations) and MEDEF (movement for French companies), the UIT has mobilized, thanks to the skills of its fiscal affairs department, to reduce the burden and complexity of the high taxes supported by manufacturers.
The profession also defends the Fashion Collection Tax Credit, a custom-made tool created to help fashion companies update their drawings and models and the (Research Tax Credit) used mostly by companies who produce technical fabrics.