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Sweden set to tax plastic carrier bags – here’s how much you’ll have to pay

A new tax on plastic carrier bags could see your Swedish grocery bill increase sharply.

Sweden set to tax plastic carrier bags – here's how much you'll have to pay
Swedish grocery bags today cost around two to three kronor. Photo: Vilhelm Stokstad/TT

In order to get to grips with increasing plastic waste, the government has proposed a new tax which could double the price of standard single-use plastic carrier bags offered at supermarket checkouts.

The bags, which usually cost between two and three kronor in the store, will get slapped with a three-kronor tax according to the proposal – which could bring the customer's cost to around five kronor ($0.52).

Lightweight transparent plastic bags, which are handed out for free in grocery stores and used to pack fruit and vegetables, for example, will get a 0.30 kronor – or 30 öre – tax.

The tax would be paid by those who import or produce the bags. But according to the proposal, the cost is expected to be passed on to consumers to the tune of 3.1 billion kronor a year, or 310 kronor per person.

However, if the target for reduced use of plastic bags is met, the cost for the individual consumer would instead fall to 175 kronor a year, according to the government proposal, outlined in Swedish here.

Multiple-use bags usually have a greater impact on the environment at the time of production than single-use bags, with cotton bags needing to be reused 130-400 times to compensate, according to the agency. But the proposal still finds that reduced use of plastic bags will be good for the environment and lead to less littering.

Swedish plastic carrier bags are fairly sturdy and are often used as bin bags in households after they've served their time, whenever they are not reused for a grocery run or for wrapping a lunch box to take to work.

But Swedes still use 770 million plastic bags measuring 15-50 micrometres in thickness per year – the standard carrier bags you get at the checkout counter in supermarkets or alcohol chain Systembolaget – according to a report by the Swedish Environmental Protection Agency in 2016.

The proposal is part of Sweden's cross-bloc budget proposal, worked out by the ruling Social Democrat-Green coalition in collaboration with the Centre and Liberal parties. It has been referred to Sweden's Council on Legislation for consultation. If it goes ahead it is expected to come into force on May 1st, 2020.

Member comments

  1. Currently visiting the USA. All seems a bit pointless when you go to the local Walmart here and walk out with 20 items in 10 bags…

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How to protect your Swedish savings when the stock market tumbles

Recent stock market developments have made consumers in Sweden worried about the savings they have invested in the market.

How to protect your Swedish savings when the stock market tumbles

Stock market volatility can be unsettling, especially when it hits close to home.

On Monday, the Stockholm stock exchange mirrored global market turmoil, with the OMXS index dropping 4.8 percent in morning trading. By 11 am, there was a slight recovery, but the index remained 2.6 percent down.

READ MORE: Stockholm stock exchange opens in the red amid global market jitters

Big names in Swedish industry weren’t spared: Boliden, a major mining company, dropped 3 percent, defence giant Saab fell 1.5 percent, and engineering firm Sandvik declined by 2.6 percent. In the banking sector, SEB took a 2.4 percent hit, while Swedbank dropped 3.6 percent.

This turbulence in the Swedish market came after significant drops in Japan’s Nikkei 225 index, which experienced its most significant one-day fall since the 1987 Black Monday Crash, and similar declines in markets across South Korea, Frankfurt, London, and anticipated losses on Wall Street.

In these uncertain times, many Swedish consumers with money invested in the market wonder whether they should do something to safeguard their savings.

Avoid impulsive decisions, expert warns

Stock market volatility can raise concerns about the safety of your savings, but according to SEB household economist Américo Fernández, there’s no need to panic.

“Should they be worried? I mean, no. I would say that this is how the stock market works: there’s a lot of uncertainty and risk connected,” he told The Local. 

“When you have savings on the global stock exchanges, this will happen, especially when we’ve had at least six months of really, really good returns – maybe even too good. Then, this is a little bit expected.

“But of course, it’s always dramatic when we have such developments in the stock market in just one or two days.”

Slow and steady wins the (investment) race

For those wondering how to protect themselves against such crashes, Fernández emphasised a consistent and steady approach to investing.

“The most common thing, the best strategy for the broad masses, is to save on a monthly basis. And this is what many Swedes do; our surveys show that 9 out of 10 Swedes save on the stock market every month. This is precisely what you should do: invest in a mutual fund, which is quite common in Sweden,” he said.

“In circumstances such as these, you buy more at a lower price, instead of timing the stock market, which is almost impossible, continue your monthly investments through mutual funds. That’s a good way of diversifying your portfolio.”

READ ALSO: Will the krona’s decline stop Riksbank from cutting rates?

Ignore the alarmist headlines

The SEB household economist also advised against reacting hastily to alarming headlines.

“Another thing that households should be aware of is that when you see alarming headlines, you should sit and calmly ride the wave out.

“It’s understandable that a lot of people are affected by herd mentality when we have these negative headlines. Everyone, but especially households with tiny savings, acts and sells, and then they buy again when the headlines are positive, when the stock exchange is at high levels…

“That is the opposite of what you should do. Try to neglect these things and be cool in these circumstances, even though it seems bad and hurts your wallet. However, if it hurts your wallet too much, that might be a signal that you have too much money in the stock market (laughs), which can be common for younger investors. Although they have had it pretty good recently,” he noted.

This advice is not only applicable to Sweden but also relevant across Scandinavia, according to Fernández.

“I think it’s applicable. Across Scandinavia, all Nordic countries save a lot of money on the stock exchange, partially because the pension system isn’t fully funded by the government,” he said.

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