Politics, the Second Hand Tax, and a Deposit System for Electronics

In 2017, Sweden introduced a chemical tax on electronics. The intention was good: to influence development and reduce hazardous substances in products. But this became a turning point. Against all odds—and original intentions—the tax was extended to include second-hand products. No one had expected Sweden to make reuse more difficult. That was never the goal, but due to the way the legislation was structured, the so-called “secondhand tax” became reality.

To handle the impact, we had to restructure Inrego into several companies and launch a major awareness campaign about what had happened and the consequences it brought. It was this moment that truly brought Inrego into the political arena. Later, a proposal emerged to introduce a deposit system for electronics in Sweden. Again, while the intention may sound reasonable, the outcome risks unintended consequences—much like how the Home PC reform nearly wiped out our business back in 1998.

Political initiatives have a significant influence on market conditions. Evaluating every consequence is hard—but essential. Stable rules are a prerequisite for long-term entrepreneurship. The chemical tax showed us—more clearly than ever—that Inrego needed to be part of the political dialogue if Sweden is to succeed in transitioning to a more resource-efficient economy.

Today, Inrego is one of Sweden’s leading examples of how to make the circular economy work in practice. We actively collaborate with academia and are a frequently studied case—from students to professors, politicians, and international delegations, many of whom visit our production facility in Täby. When the chemical tax was up for revision, Inrego was the only private company invited to submit an official statement. We are also part of RE:Source, one of Sweden’s national strategic innovation programs for improving resource efficiency.

The shift is clear: from what’s good for business is good for society to what’s good for society is good for business.