Changes to the electronics tax at the Swedish Legislative Council

During the summer, the Swedish government submitted several proposals for changes to the electronics tax to the Legislative Council in the form of a Legislative Council referral. This indicates a certain urgency and that they plan to present a bill on this to the Riksdag as soon as the election is over. APPLiAnytt has taken a closer look at the Legislative Council's response.

The Legislative Council has quickly responded to the Legislative Council's referral and now has a number of objections, including regarding the introduction of the so-called over-indexation of tax rates.

Over-indexation: The Legislative Council wants to postpone the introduction
Regarding the hot issue of over-indexation of the tax, i.e. the two percent 'extra increase' in addition to the CPI that is to be made annually according to the proposal, the Legislative Council wants to postpone the introduction to apply from calendar year 2024 and subsequent calendar years. But one can believe that this is being proposed because it is known that the already decided annual CPI increase for next year will give an outcome of 8-10 percent (= inflation) and would hurt consumers and fuel inflation. But no, it is instead due solely to technicalities in the legal text, which according to the Legislative Council make it impossible to introduce the over-indexation already on December 31, 2022 as proposed in the bill.

More suggestions being commented on by the Law Council
The government's legislative council's report on changes to the electronics tax contains several points on which the Legislative Council has views. This applies, for example, to the proposals for new provisions for private imports from third countries that are included in the legislative council's report. From next year, the net weight of the goods does not need to be stated on the customs declaration from third countries according to new international customs rules, which is why the tax will instead be calculated on the heaviest goods that normally appear on the market within each category. The process of appealing this flat rate tax, in cases where it is clearly incorrect, needs to be simplified for the 'customer' according to the Legislative Council.

Furthermore, there are demands from the Legislative Council for clarification within the right to deduct by 50 percent or 95 percent, which is proposed to be increased from 90 percent.

More proposals without the Legislative Council's comment
The government's submission to the Legislative Council also contains several points that do not warrant comments from it. The removal of the significance of how the flame retardant is added for tax liability, i.e. whether a substance is additive or reactively added, is not commented on, for example. Nor are the proposed new rules for tax on second-hand goods and recycled goods commented on by the Legislative Council.

The way is now open for a quick bill and a parliamentary decision according to this proposal – unless the parliamentary election changes the conditions for this!

Kent Oderud, Chairman, APPLiA – Sweden

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About the Law Council
The Legislative Council reviews and issues opinions on legislative proposals at the request of the government or a parliamentary committee.

The Legislative Council's review shall concern:
1. how the bill relates to the constitution and the legal order in general,
2. how the provisions of the proposal relate to each other,
3. how the proposal relates to the requirements of legal certainty,
4. whether the proposal is designed in such a way that the law can be assumed to meet the stated objectives,
5. what problems may arise during application.

The Legal Affairs Council often has reason to take a position on whether proposed legal provisions are compatible with EU law or the European Convention on Human Rights.

Electronics tax