Sweden: Tax on Chemicals in Clothing and Footwear Will Not Proceed

14 December 2021

sweden textiles taxIn the proposal for a Swedish national budget for 2022, issued on 16 September 2021, the Swedish Government stated that it had no intentions to move forward with a proposal for a tax on chemicals in clothes and footwear. The government saw several practical problems in implementing the proposal, and other regulations regarding the chemical substances in question have lessened the need for a tax.

The proposed Swedish national budget for 2022 can be found here (see section 11.19 concerning the tax on chemicals in clothing and footwear).

On 24 November 2021, the Swedish Parliament debated and decided on the expenditure framework decision. The full report on the Parliament decision on the central government budget, compiled by the Finance Committee, can be found here.

It can be noted that Parliament made some changes to the government’s budget, but nothing concerning the tax on chemicals in clothing and shoes.

In fact, the report states that "A tax on chemicals in clothing and shoes will not be introduced. The budget proposal makes the assessment that there should not currently be a tax on chemicals in clothing and shoes".

Compliance & Risks received confirmation from the Swedish Ministry of Finance that the previously projected income from the tax was removed from the years 2022, 2023 and 2024, as well as long term.

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