The Swedish government announced its plans to introduce the chemical tax on clothing and footwear in April 2021, but due to the pandemic, the rollout will be postponed to 2022.
In May of 2020, SGS published the announcement of the proposed Swedish tax on clothing and footwear. In October, the Swedish government announced its plans to implement the proposed chemical tax in 2022.
The tax proposal is intended to phase out hazardous chemicals in order to reduce health problems for consumers that are exposed to the chemicals, to reduce environment impact arising during manufacture, washing and waste, and to increase the quality of recycled materials. The tax will apply to all clothing and footwear that are produced or imported into Sweden from abroad, with the exception of certain protective clothing and toys.
The tax rate generally would be SEK 40 per kilogram of the product’s weight, but with a possible reduction of up to 95% of the tax depending on the chemical content. There could be an additional tax at a rate of SEK 19 per kilogram if the product includes rubber material, polyvinyl chloride or polyurethane, and another additional tax at a rate of SEK 19 per kilogram for all-weather products.
Any manufacturers or importers of taxable products from another EU-country into Sweden will be liable to pay tax. The party liable to pay taxes on imported products will be the party that would have been liable to pay customs duties. Also, distance sales to Sweden from other EU-countries will be covered by this tax.
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