Swedish government wants to cut VAT rate on bicycle and shoe repairs and let people claim back cost of appliance repairs
Sweden’s ruling Social Democrat and Green party coalition is set to submit proposals to parliament on Tuesday to slash the VAT rate on repairs to bicycles, clothes and shoes from 25% to 12%.
The government will also submit a proposal that will 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.
“We believe that this could substantially lower the cost and so make it more rational economic behaviour to repair your goods,” said Per Bolund, Sweden’s minister for financial markets and consumer affairs and one of six Green party appointees to the cabinet.
Bolund has been a key figure in driving through the new incentives. He estimates 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.
https://www.theguardian.com/world/2016/sep/19/waste-not-want-not-sweden-tax-breaks-repairs
The government will also submit a proposal that will 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.
“We believe that this could substantially lower the cost and so make it more rational economic behaviour to repair your goods,” said Per Bolund, Sweden’s minister for financial markets and consumer affairs and one of six Green party appointees to the cabinet.
Bolund has been a key figure in driving through the new incentives. He estimates 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.
https://www.theguardian.com/world/2016/sep/19/waste-not-want-not-sweden-tax-breaks-repairs