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Chemical tax can be very effective and more countries should try it

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Chemical tax can be very effective and more countries should try it

Putting a tax on products that contain hazardous chemicals is a very effective tool to reduce the negative impact these chemicals have on health and the environment.

How so? Simply because paying tax means less profit for the company behind the product. And even if it tries to account for the tax cost by raising the price it usually leads to a smaller profit anyway, since customers will be less inclined to buy the product at a higher price point. Therefore, being taxed is something companies looking to make healthy profits will want to avoid.

The most rational way forward in a scenario like this is then of course to remove the reason you’re being taxed in the first place. In the case of chemicals in products this would mean getting rid of the hazardous chemicals.

Published on 12 Oct 2017

“Since it’s such a touchy issue, it needs to be handled very diplomatically and implemented in such a way that you maximise its effect without making it toothless”

Taxation is one of the few tools EU member states have if they want to protect their citizens from toxic substances to an even larger extent than what the EU’s chemicals legislations currently do, and it is an option that ChemSec would like to see member states explore even more than today. It could play an important role in driving the transition towards safer products, especially since REACH and other EU-wide legal frameworks are moving so slowly.

But it’s not uncontroversial. There are always some people whose faces turn tomato red whenever taxes are brought up – no matter if the intention of the tax holds the potential to help current and future generations to avoid a plethora of health-related issues.