2022.09.20
Eco-design and political regulations require new solutions
In the coming years, we are expected to see several political regulations affecting, among other things, household appliances. But sometimes legislation conflicts with each other, which in itself can mean difficulties for both consumers and retailers/suppliers to find the optimal solutions. Applia's chairman Matts Spångberg highlights the weaknesses of the regulations.
Increased repairability is a clear area where it should be easier for consumers to get their products repaired over time. In principle, the requirement is positive, but there is a downside. Older products that contain, for example, banned chemicals such as freon, or products that are not energy efficient are not always profitable and sustainable to repair. In other words, in these cases, a clear disincentive to repair may be most beneficial for the environment.
The tax deduction has not had the same impact in our industry compared to many others. The reason is probably that only the labor cost in the consumer's home forms the basis for the tax deduction. In other words, if politicians want to promote increased repairability, the entire repair cost should instead form the basis for the tax deduction. In many cases, not least in rural areas, the travel cost for repairs can be a significantly higher cost than the labor cost in the consumer's home.
Lower VAT
The square deduction is administratively cumbersome for many companies and in other industries, for example in bicycle repairs, a lower VAT rate has been introduced for repairs of these products. Most likely, lower VAT would be a significantly better way to increase the number of repairs on household products than the square deduction.
In other words - what is essential over time is that environmental legislators do not enact laws that conflict with each other and thus risk not achieving environmental benefits, but instead look at the big picture and what is practically feasible, with a consumer focus.
/Matts Spångberg, Applia
