AWARD YEAR
2017
CATEGORY
Community
GOALS
Industry, Innovation & Infrastructure
KEYWORDS
circular economy, Tax cuts, Repair instead of throwing out
COUNTRY
Sweden
DESIGNED BY
Swedish government - Sweden
WEBSITE
https://www.theguardian.com/world/2016/sep/19/waste-not-want-not-sweden-tax-breaks-repairs
Sweden gives tax breaks for repairs
Government tries to tackle ‘throwaway culture’ by cutting VAT on fixing up your stuff
The Swedish government is introducing tax breaks on repairs to everything from bicycles to washing machines so it will no longer make sense to throw out old or broken items and buy new ones.
It will also submit a proposal that would allow people to claim back from income tax half of the labour cost on repairs to appliances such as fridges, ovens, dishwashers and washing machines.
Estimates suggests that the VAT cut will reduce the cost of a repair worth 400 SEK (£36) by about 50 SEK, enough to stimulate the repair industry in Sweden.
Hopes are, that the tax break on appliances will spur the creation of a new home-repairs service industry, providing much-needed jobs for new immigrants who lack formal education.
The incentives are part of a shift in government focus from reducing carbon emissions produced domestically to reducing emissions tied to goods produced elsewhere.