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Sweden: Tax on chemicals used in electronic products; possible expansion

Sweden: Tax on chemicals used in electronic products

A tax on chemicals used with respect to certain electronic products was introduced in Sweden in 2017. Concerns about the implications of this so-called ”chemical tax” were initially expressed, in particular concerns about the potential distortion that the tax could have on Swedish business (compared to foreign suppliers) and for increased prices that consumers would pay.

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The Swedish government now appears ready to expand the scope of the chemical tax to apply to clothing and shoes (that is, a tax on certain chemicals used in the manufacture of clothes and shoes). This expansion would represent a shift towards “green taxes.” If and when such an expansion would take place is unclear. 

Possible tax rate changes

The rate of the chemical tax, effective 1 January 2019, was increased to 122 SEK per kg (up from 120 SEK) for electronic products. The tax rate for ”white goods” remains at 8 SEK per kg. The maximum tax per product was increased to 327 SEK (up from 320 SEK).

There are proposals to increase the chemical tax, effective 1 August 2019. Under the proposals:

  • The tax rate for ”white goods” would increase to 11 SEK per kg.
  • The tax on other electronic products would increase to 160 SEK per kg.
  • The maximum tax per product would increase to 440 SEK.


Read a May 2019 report prepared by the KPMG member firm in Sweden

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