Frida Faxborn

17 May - A day to celebrate chemicals?

Sustainability
The chemicals tax on electronics is currently being investigated by the Swedish Chemicals Agency and the Swedish Tax Agency. A tax that was introduced in July 2017, with tax levels being increased in 2019. In its first interim report, which evaluated the current tax, it emerged that it has not been cost-effective, but has so far been mostly burdensome, time-consuming and costly, and perhaps most seriously, does not have the intended effect, i.e. does not lead to the use of safer alternatives.

The telecom companies, together with other industry organizations, have on several occasions stated that the design of the law encourages false substitution by producers instead of choosing safe chemicals prioritizing maximum tax reduction. In addition, it is not possible to check the correct tax deduction because there are no standardized measurement methods for the taxed chemicals. Instead, it should be the intrinsic hazard properties of the individual substance that are taxed and it should be possible to measure and control the taxed substance.

Before Christmas, IT&Telecom companies, together with Cefic and pinfa, reiterated our views to the inquiry on what changes we would like to see in the law ahead of the final report of the commission.

  1. Remove the law completely as it does not lead to increased substitution of hazardous flame retardants and imposes a large administrative burden on the entire value chain. A withdrawal should also be seen in the light of the EU's green deal, which is looking at harmonizing and streamlining chemicals legislation.
  2. If the tax is retained, base it on the intrinsic hazard properties of flame retardants in accordance with the European CLP Regulation* instead of arbitrary taxation criteria. If only chlorinated and brominated flame retardants are taxed, the current annex to the Chemicals Act can be removed completely. This would also provide the legal certainty that is currently lacking, as reliable control methods exist for both bromine and chlorine. To motivate the taxed companies to switch to safer alternatives, a zero tax option should be introduced, which is currently lacking.

The current assignment to the Swedish Chemicals Agency and the Swedish Tax Agency has been extended until May 17, which we hope will lead to a well-balanced proposal for legislative changes and that we, together with our Norwegian friends, have reason to celebrate the day in particular. We have said it before, but we will say it again: Do it again - do it right.

Frida Faxborn
Industrial policy expert

The *CLP Regulation contains rules on the classification, labeling and packaging of chemical products. It also contains rules on the notification of information for substances and mixtures. To place chemical products on the market, you need to make sure you comply with these rules. https://eur-lex.europa.eu/legal-content/SV/TXT/PDF/?uri=CELEX:02008R1272-20201114&from=EN