The electronics tax, formally known as the law on tax on chemicals in certain electronics (LSKE), was introduced in 2017 with the aim of reducing the prevalence of hazardous chemicals in Swedish homes. The tax is unique to Sweden from a European perspective and entails annual costs of approximately 2.5 billion Swedish kronor for Swedish households.
According to a new party survey conducted by APPLiA and ElektronikBranschen, the tax lacks political support in its current form among all parties in the Riksdag. To gather public opinion ahead of the upcoming election, the website Elektronikskatt.se is now being launched.
This is a tax without political defenders. No party in the Riksdag wants to retain it in its current form, yet Swedish households pay 2.5 billion kronor a year. For many products, it's an extra 690 kronor when you buy, for example, a TV or a refrigerator, says Kent Oderud, chairman of APPLiA.
The organizations emphasize that a national point tax does not steer global product development, but primarily results in a higher price for the Swedish consumer.
Electronics are developed for a global market, a Swedish point tax does not affect product development but only the price for the consumer. With Elektronikskatt.se, we want more people to understand what the tax actually entails and facilitate those who want to make their voices heard before the election, says Pernilla Enebrink, CEO of ElektronikBranschen.
Questionable Environmental Benefit and Unfair Competition
In addition to the political disagreement, the tax has also been questioned by researchers. Mattias Lindahl, professor of product-related environmental work at Linköping University, assesses that the tax risks counteracting its own purpose.
The increased cost may lead consumers to choose cheaper and less sustainable alternatives. This means increased sales of products with shorter lifespans and a negative environmental benefit, says Mattias Lindahl.
Even the Swedish Tax Agency and the Swedish Chemicals Agency have previously expressed criticism of the tax regarding a lack of environmental steering and high administrative costs.
The demand to reform or abolish the tax comes at a time when the home electronics industry is facing headwinds. Already at the beginning of last year, Ehandel.se was able to report on a decline in the industry's sales, driven by an economic downturn and rising cost of living. The industry also pointed out that regulations and the domestic electronics tax create distorted competition in relation to international e-commerce platforms.
We are seeing a growing market where products containing hazardous substances are sold without anyone taking responsibility for recycling and waste management. It is unreasonable for serious players to be forced to foot the bill. It is time for politics to act, Pernilla Enebrink stated in connection with the industry's report last year.