News Article

Sweden Wants 50% Tax Reduction on Bike Repairs

Sales & Trends

STOCKHOLM, Sweden – To stimulate the repair industry in Sweden, the government is studying the opportunity to cut half the VAT rate on for example bicycle repairs from the current 25% to 12%.

Sweden Wants 50% Tax Reduction on Bike Repairs
The Swedish government proposes a tax reduction on bicycle repair by 50%. – Photo Bike Europe

This proposal is part of wider package of tax breaks on repairs to everything from bicycles and many other products so it will no longer make sense to throw out old or broken items and buy new ones. This was reported today by the Guardian.

Claim on income tax

Next to tax breaks, people should also be able to claim back half of the labour cost on repairs from their income tax. “We are convinced this could substantially lower the cost and make it economically rational to repair your goods,” said Per Bolund, Sweden’s minister for financial markets and consumer affairs in the Guardian.

New home-repairs service industry

He also expects that the tax break on bicycles 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. Emissions linked to consumption have stubbornly risen over the past decades.

According to Bolund, “there is a shift in view in Sweden and an increased knowledge that we need to make our things last longer in order to reduce materials’ consumption.”