Chemical tax on the agenda!

On 16 October, IT&Telecomföretagen organized a roundtable discussion on the chemicals tax. About twenty people from companies, industry organizations and the public sector attended.

The chemical tax that entered into force on July 1, 2017 has been rightly criticized as it cannot be considered to be appropriately designed. Like most environmental taxes, the chemical tax aimed to phase out the use of certain flame retardants by making it more expensive for some substances and cheaper for others. The tax was targeted at specific flame retardants found in white goods and electronics.

But the design of the chemical tax is flawed. It does not encourage companies to use less hazardous flame retardants in any practical sense, because it does not categorize substances primarily on the basis of how the substance has been added to the product. The risk is that companies end up choosing to use flame retardants that reduce the tax rate but may be more dangerous than those that are taxed.

All those present at the roundtable agreed that the chemicals tax left much to be desired. Therefore, it was decided to continue the work by drafting a white paper focusing on measures that would make the chemicals tax fit for purpose.

Business can be a major force in the transition to a sustainable society. This is a crucial insight for politicians, which is also binding. Sweden must have environmental laws that lead to both an improved business climate and a cleaner environment. This is by no means a contradiction in terms, but a necessity.