After pressure: The Tax Committee says no

The tax on certain electronics (including white goods, IT and other home electronics) was introduced in July 2017 and has since been subject to strong criticism from authorities, companies and organisations. This has only led to the tax structure being changed several times since its introduction and increases in the tax by between 40-50 percent. The constant changes indicate that the tax is not working and generates administrative challenges and costs for companies. The increase in prices affects consumers and fuels inflation.

The newly appointed Tax Committee is now saying no to adjusting the electronics tax once again. Now the proposal is to adjust the electronics tax annually in relation to GDP growth. The previous government's proposal was to add an additional two percent on top of the index increase that occurs at the turn of each year of the electronics tax. The purpose of this would have been for the tax to take into account income increases and not just follow the general price increase.

Overindexing is stopped

Since the annual indexation as of January 1, 2023 will probably already be double-digit – as it will reflect inflation – this would mean a tax increase of approximately twelve percent for 2023 with the over-indexation proposed by the previous government. The Tax Committee in the Swedish Parliament is now saying no to this over-indexation.

The Tax Committee also believes that the evaluations made of the taxes have shown that they have not been effective enough to achieve the goals that were intended for them. Therefore, the Committee believes that the Riksdag should say no to the government's proposal to recalculate these taxes based on the GDP index.

The Center Party joins in criticizing the electronics tax

All parties in the new government base plus C support the decision in the Tax Committee and also take the opportunity to question the tax altogether. This group has a majority in the committee and therefore it is likely that the Riksdag will also vote in this direction.

S, V and MP have objections to the committee's proposal in two reservations. The Social Democrats believe that the Riksdag should vote yes to this proposal, which concerns adjusting the tax on chemicals in certain electronics. The Left Party and the Green Party believe that the Riksdag should vote yes to the previous government's proposal in general, but also point out that the tax needs to be changed to function better. Read the full Tax Committee report (which also concerns the abolition of the waste incineration tax) here.

Planned day for debate and decision in the Riksdag

Before the Riksdag makes a decision on a tax issue, it is first discussed in the Riksdag's tax committee. The committee submits its proposal for a decision based on what the majority of the members of the committee think. Those who disagree may submit objections, in the form of so-called reservations. The Riksdag usually decides as the committees propose, but sometimes a reservation receives more votes.

The planned day for debate and decision and the over-indexation of the electronics tax is today, Wednesday, October 26. The debate in the chamber and the vote will be broadcast via the Riksdag's web TV and can be watched live or afterwards. Follow the debate and vote via Web TV – The Riksdag

Text: Kent Oderud

Electronics tax