The new proposal would see residents receive tax breaks for repairing items otherwise destined for landfill. The proposal which is being submitted would see the Value Added Tax (VAT) rate reduced from 25% to 12% on repairs to items such as clothing, footwear and bicycles. Another proposal also to be submitted would see consumers be able to claim income tax back on half of the labour costs of repairs to items such as fridges, dishwashers, ovens and washing machines.
It is believed that the scheme would reduce the number of items being sent to landfill by stimulating the repair economy in Sweden - it would make it economically rational to have items repaired rather than throw them away. The proposal will be submitted to parliament in December and if voted in will be come law from January 1st 2017.
It will be interesting development to follow...maybe Australia too could have such a scheme?