2025.03.24
Don't punish Swedish companies – scrap the electronics tax
The government has taken measures to stop unfair competition from abroad. Now it is time to take the next step and abolish the electronics tax – a levy that makes Swedish electronics more expensive than in neighboring countries, without providing any environmental benefit whatsoever.
APPLiA, together with representatives from the Computer Games Industry, the Electronics Industry, Swedish Trade, TechSverige, the Swedish Association of Small Businesses and the Swedish Industry Association for Catering Suppliers, has written a debate article in Dagens Industri.
Minister of the Environment Romina Pourmokhtari, together with Minister of Enterprise Ebba Busch, Minister of Finance Elisabeth Svantesson and Minister of Civil Service Erik Slottner, wrote on Di Debatt (10/2) that the government is now taking "forceful action" against e-commerce platforms such as Shein and Temu. The Confederation of Swedish Enterprise's member companies welcome efforts to create fair competition. Following rules, paying taxes and offering quality should pay off. Selling bad and downright dangerous products should not.
The Swedish Electricity Safety Authority and Länsförsäkringar research fund has recently shown that 93% of the electronic products from Wish and AliExpress are downright dangerous to use, which clearly shows the need for stricter regulations. But the government can do more – and one measure that would strengthen the competitiveness of Swedish companies at least as much as an import ban on Temu and Shein is to abolish the electronics tax.
The Electronics Tax is an excise tax on electronic products that was introduced in 2017 with the aim of reducing hazardous substances in homes by phasing out certain flame retardants. It affects all companies that manufacture or import electronics and covers everything from mobile phones, game consoles to commercial kitchen electronics, regardless of whether the products are used in a home environment or not.
The tax has proven neither cost-effective nor effective, according to the Swedish Tax Agency. It leads to fewer jobs in the trade, makes recycling more difficult and forces Swedish consumers to pay significantly more for their electronics than, for example, the Danes – even though the products are identical. Is this really how the government's environmental taxes are supposed to work?
The electronics industry's already low margins make the tax an extra burden that puts pressure on Swedish companies and drives up consumer prices. Over a quarter of electronics companies are making a loss, which means that the additional costs caused by the electronics tax hit Swedish companies hard and significantly raised prices for consumers.
The government should abolish the tax for three main reasons:
1. It does not achieve its purpose.
The tax barely affects the presence of harmful chemicals but hits Swedish retailers hard. It is levied based on the weight of the product rather than its actual chemical content, which means that it does not steer towards safer alternatives. On the contrary, recent studies suggest that the tax rather increases the inflow of dangerous chemicals into Swedish homes. In addition, the electronics market is global – Sweden accounts for only 0.7 % of it (HUI Research) – which means that the tax does not affect manufacturing. More effective solutions already exist within the EU, where work to limit hazardous substances is underway. This is where Sweden should focus its attention.
2. It makes recycling difficult.
The tax fails to promote recycling and reuse. It also affects used electronics products that are imported, making them more expensive and more difficult to sell in Sweden. The result is that Swedish companies cannot meet the increasing demand for used electronics, and the goods are sold to other EU countries instead.
3. It creates unhealthy competition.
The tax makes it cheaper to buy electronics from Germany than from a Swedish store. In today's digital economy, consumers do not accept that a game console costs 600 kronor more in Sweden when the alternative is just a click away.
Already today, 12.5% of Swedes' electronics purchases are made abroad, which means millions of kronor in lost tax revenue. At the same time, Swedish companies are being pushed to the limit, while foreign players – both within the EU and via low-price platforms such as Shein and Temu – can compete on completely different terms, not least by delivering fire and health-hazardous products straight into Swedish homes.
The electronics tax brings in The state costs 2.4 billion kronor per year, but the negative effects outweigh the positive effects. The tax does not lead to positive environmental effects, on the contrary, Sweden becomes more polluted with reduced recycling and more inferior chemicals in homes.
In a time of tough competition, the government should make it easier for Swedish companies, not harder. The electronics tax affects serious players but leaves the field open for low-cost platforms to sell cheap and downright dangerous electronics. If the government is serious about fair competition, it is time to scrap the dirty electronics tax, once and for all. The tax not only ruins the electronics industry but many more, both individuals and families, but also Sweden as a technology-oriented and innovative country by making technology more expensive here.
Per Strömback, CEO, Computer Games Industry
Pernilla Enebrink, CEO, Electronics Industry
Sofia Larsen, CEO, Swedish Trade
Asa Zetterberg, CEO, TechSweden
Kent Oderud, Chairman APPLiA
Sten Lindgren, board member, Swedish Federation of Small Businesses
Henrik Jansson, CEO, Swedish Catering Suppliers Association
