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Oslo Economics will study the effects of removing or reducing VAT on repairs

23.11.2021 - Labor market, welfare and society

On behalf of the Consumer Council, Oslo Economics will study the effects of a reduction or removal of VAT on repairs in various consumer markets. Among other things, we will analyze the extent to which such a tool can change consumer behavior in the direction of choosing repair rather than buying new products.

The government’s strategy for a green circular economy announces a major review of the tax and excise system. A possible reduction or removal of VAT on repair services will aim to achieve better resource utilization and a more circular economy. We will not study the achievement of these goals directly, but the report will provide increased insight into how a tax reduction could affect the demand for repair services.

The project will focus on household products, electronics, furniture, clothing and shoes. The products belong to consumer markets with different characteristics, and the effect of a tax reduction can be expected to vary from market to market.

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