Swedish Government Abandons Proposed Chemical Tax on Clothing and Footwear Products

The Swedish government has announced the abandoning of its
proposed chemical tax on clothing and footwear due to practical difficulties
associated with its introduction.

The tax was originally going to be introduced in April 2021,
before being postponed until January 1, 2022, because of the pandemic. It was
to be applied to all clothing and footwear manufactured or imported into Sweden
and was intended as a driver to force the phasing out of hazardous substances.
It was hope this would reduce health issues for consumers and the impact on the
environment caused by manufacturing, washing and waste. It was also hoped it
would improve the quality of recycled materials.

Following further reassessment, the planned tax introduction has
now been abandoned. This is because:

  • Changes to Swedish customs rules have created difficulties in
    imposing the tax for private imports from countries outside the EU
  • It is now considered inappropriate to impose a new tax on clothing
    and footwear during as global economic downturn, and at a time when the apparel
    industry is undergoing structural reforms
  • New and planned rules for hazardous substances covered by the
    proposed tax have reduced the need for tax collection

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state-of-the-art laboratories, including 10 in China, specializing in testing
of apparel, footwear, and home textiles. Their committed team is drawn from
multi-disciplinary backgrounds, allowing them to conduct a comprehensive range
of physical, chemical, and functional testing services for components,
materials and finished products. SGS helps companies ensure quality,
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standards worldwide. In the end, it’s only trusted because it’s tested.
Learn more about SGS’s Softlines Services.

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Louann Spirito

Consumer and Retail — Softlines

US & Canada Softlines Business Head

Tel: +1 973 461 7919

Email: crs.media@sgs.com

Website: www.sgs.com/softlines

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