Sweden: Proposal to Further Increase the Chemical Tax

The Swedish Government published its draft 2019 Spring Fiscal Policy Bill Vårändringsbudget 2018/2019. The introduction of the so-called chemical tax on electronics in Sweden in the summer of 2017 came in an effort to reduce the use of hazardous chemicals. The subject bill presented to the parliament on April 10, 2019 proposes a further increase in chemical tax.

A surge of 37,5% is put forth on chemicals in white goods, while consumer electronics-chemical tax is expected to rise to 33%, both values excluding VAT (25%). Moreover, the bill proposes that chemical tax can be reduced by 50% to 90% on products free of bromide, chloride or phosphorus. Interestingly enough, products sold via e-commerce are exempt from the current and newly proposed chemical tax regulation.