REDUCE VAT ON REPAIRS

Janicke Otertjernet and Elcare had a visit from Crown Prince Haakon on Monday, 9 March. Photo: Robin Nilsen

Opinion: We come from different standpoints; trade, consumer interests, business and environmental movement, but we are united in one simple message.

This is a joint statement from Elkjøp Nordic, the Consumer Council, Skift - Business Climate Leaders and the Future in Our Hands, who together with Crown Prince Haakon on Monday, 9 March visited Elcare, the Nordic region's largest electronics repair workshop.

A mobile phone falls to the ground. A washing machine stops. A PC starts to fail. Many Norwegians want to repair. Nevertheless, far too many choose to buy new. Why?

Because it often pays off. Today, Norwegian consumers pay 25 percent VAT on repairs. The consequence is obvious: Those who want to repair often end up buying new because it becomes too expensive to take care of what they already have. It makes no sense.

It becomes too expensive to do the right thing. It is bad environmental policy. And it is bad business policy. And it is bad for consumers.

Norway has committed to reducing emissions and the climate footprint of consumption. We know that the production of new goods accounts for significant emissions. One of the most effective things we can do is to extend the lifespan of the products we already own. Nevertheless, we have set ourselves up so that it does not pay off.

Right now, the government is gathered in its first budget conference, the March conference, and is setting the framework for next year's state budget. This is where priorities are shaped. This is where the direction is set.

If Norway is to succeed with the circular economy, repair must be a real and profitable alternative, both for consumers and for businesses. Reducing VAT on repairs will:

 

· enable more people to choose sustainably

· strengthen the circular economy

· create and secure local jobs in maintenance and repair

· reduce waste and unnecessary resource use

This is not a symbolic measure. It is a concrete, feasible and targeted action.

As the government now lays the foundation for next year's budget, it has an opportunity to show that green transition is about more than ambitions. We urge the government and the Storting to use the budget work to correct an obvious imbalance:

It should pay to repair.

Four recommendations for a more sustainable and circular economy in Norway:

1. Extend the lifespan of products

Products must be designed for repair, upgrading, and reuse. The right to repair and access to spare parts is essential.

2. Create consumer-friendly solutions

It must become easier to choose climate-friendly options. Clear information about lifespan, repairability, and environmental impact strengthens consumer choices.

3. Build circular business models

Repair and second-hand purchases must be further developed and made available 

4. Ensure predictable framework conditions

The authorities must facilitate transformation through framework conditions that promote responsible production and a circular economy.

 

Fredrik Tønnesen. Photo: Elkjøp
Mette Fossum. Photo: The Consumer Council
Bjørn K. Haugland. Photo: Shift
Ingrid Næss-Holm. Photo: The Future in Our Hands
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