Several media outlets reported on Wednesday that the Swedish government and the Sweden Democrats have agreed to abolish or significantly reduce the excise tax on plastic bags from 1 January next year. The tax generated SEK 519 million in revenue last year, according to the Swedish Tax Agency. However, Climate Minister Romina Pourmokhtari clarified that there is no agreement to abolish the tax but rather to refer the issue for future budget work in the autumn, stating that there has been a misunderstanding. DN has reported that if the tax is abolished, Sweden may be required to pay additional fees to the EU budget as a result of a 2020 decision that requires countries to contribute a fee of €0.8 for every kilogram of plastic packaging waste that is not recycled. In 2017, Swedes consumed an average of 84 plastic bags per person per year, which translated into fees of around SEK 200 million to the EU; however, as of 2021, the figure has fallen to 14 bags per person.
On Wednesday, several media reported that the government and the Sweden Democrats have decided that the excise tax on plastic bags will be abolished or greatly reduced from 1 January next year. According to the Swedish Tax Agency, the tax generated revenue of SEK 519 million last year, reported Ekot.
After that, Climate Minister Romina Pourmokhtari (L) has pointed out that there is no agreement that the tax should be abolished.
– I think there has been a misunderstanding. What the four parties have agreed on so far is to refer the issue of the plastic bag tax. Decisions about this are not made now in the spring amendment budget, but in the budget work this autumn, she writes in an SMS to DN.
Photo: Eva Tedesjö
But if the tax is abolished can it also cause Sweden to pay more money to the EU, DN can tell. The reason is a decision that EU governments made in 2020, which means that for every kilogram of “plastic packaging waste” that is not materially recycled in a member state, the country must make an extra contribution to the EU budget of 0.8 euros – equivalent to approximately 9 kroner.
The reason is a decision that the EU made in 2020, which means that every kilogram of plastic packaging that is not recycled in the member states is subject to fees to the EU budget of 0.8 euros, corresponding to approximately 9 kroner.
The Swedish plastic bag tax has therefore reduced the Swedish contribution to the EU Commission. If the tax is abolished, the sale of plastic bags in the country will reasonably increase, which means that Sweden’s contribution to the EU budget will rise.
The legislation makes a distinction between plastic bags that are sold at the till and the much thinner variants that are sold on a roll as garbage bags. Namely, the former are counted as plastic packaging, but not the latter. This means that the plastic bags sold at the till are covered by the EU tax, even though the area of use in the home is often the same.
– The most common thing we use the bags for is probably to put garbage in and burn them, says Åsa Stenmarck, manager at the Resource Efficiency Unit at the Swedish Environmental Protection Agency.
In 2017, before Sweden started introducing measures to reduce the use of plastic bags, Swedes consumed 84 plastic bags per person per year. A consumption of plastic bags at that level would mean around SEK 200 million in fees to the EU per year.
However, the question is about a abolished tax will cause consumption to return to those levels, points out Åsa Stenmarck. Since 2017, the number of plastic bags per person per year has plummeted to 14 in 2021. Far from all of that reduction is caused by the plastic bag tax.
– We have also seen changes in purchasing behaviour, we buy more online and order more food bags for home delivery where the food is delivered in cartons or paper bags, says Åsa Stenmarck.
The plastic bag tax was introduced as a way to fulfill another EU directive, that the use of plastic bags must be no more than 40 per person per year by 2025 – a figure that Sweden can therefore handle with a wide margin at the moment.
– The tax has been extremely effective in achieving that goal. If Sweden does not reach the target, we risk fines, says Åsa Stenmarck.
Fact.Plastic packaging is usually set on fire
A majority of the plastic packaging used in Sweden is not materially recycled but is burned up in cogeneration plants. In 2020, 255,000 tonnes of plastic packaging were incinerated. Just over 60,000 tonnes of material were recycled.
Source: Swedish Environmental Protection Agency.