sou · GRB39d1 · 2004-01-01 00:00:00 — Most of the latter consisted of wood preservatives, which are anyway exempt from tax. Agricultures share of the amount sold was about while that of horticulture and forestry was and , respectively. Average annual sales of pesticides for use in agriculture, horticulture and forestry in 1981–1985 totalled 4,561 of substances. The corresponding figure for 1991–1995 was 1,690 . have subsequently risen slightly. In 2001, pesticides containing a total of 1,793 of substances were sold to these sectors. Most of the preparations used in agriculture are herbicides. The use of pesticides is determined by various factors. One factor is the cost of pest control, which includes the cost of the preparations, including the pesticide tax. Other factors are the choice of crops, growing conditions and the amount of weeds and pests. One important circumstance in this connection is that, in order to reduce nitrogen leaching, agriculture has switched to methods of cultivation that increase the need to control weeds and pests. Furthermore, there are in practice often no real alternatives to chemical control. These factors also explain why the use of pesticides, after declining during first half of the 1990s, has increased again. The present rate of tax on pesticides corresponds on average to about of their sale price. It has been calculated that at normal doses the tax only represents a cost of per hectare in cereal production and –100 per hectare in the production of potatoes and sugarbeet. Pesticide prices have fallen in recent years, mainly due to decreases in the prices of the group of herbicides known as glyphosates. The Inquiry concludes that the tax on pesticides has helped to reduce their use. However, the tax level is so low that it has limited effect. The indirect effect of the tax has been greater, since the tax has made it possible to finance other more effective measures to reduce the use of pesticides out of public funds. Effects of the fertilizer tax on the environment Although the tax on commercial nitrogen fertilizer has made impact on its use, it helps to reduce nitrogen leaching from arable land. The contribution made by the tax to reducing leaching is estimated to be about 1,500 of nitrogen per year. The tax has also made farmers aware of the problems associated with nitrogen leaching. The cadmium tax has helped to reduce the input of cadmium to arable land, thus reducing, in particular, the risk of adverse health effects. Effects of the pesticide tax on health and the environment The use of pesticides can be harmful to human health and the environment. Risks occur in connection with the handling of pesticides and with the intake of food and water containing pesticide residues. Generally speaking, reducing the use of pesticides also helps to reduce the risks that are associated with their use. The tax has only had a small effect on the use of pesticides. Therefore it must be assumed that the impact of the tax when it comes to reducing the risk of harmful effects on health and the environment by reducing consumption is also small. does the tax appear to have had any appreciable effect when it comes to encouraging a switch to the use of lower-risk pesticides or non- chemical alternatives. The cost of tax collection and control In 2001 the revenue from the fertilizer tax and the pesticide tax totalled million, million of which was from the fertilizer tax and about million from the pesticide tax. million of the fertilizer tax related to nitrogen and million to cadmium. The number of registered payers of fertilizer tax in 2001 was 76. The corresponding figure for the pesticide tax was 42. The taxing authority is through its the Special Tax Office in . About one full-time employee is needed for administration of the taxes. The cost of administration is estimated to be about per year. In addition to this cost there are control and audit costs that vary depending on the amount of work involved. The administration of the fertilizer and pesticide taxes is simple, and the resources needed in the form of personnel etc. are limited. The administrative costs are considered relatively low. Effects of the taxes on the international competitiveness of agriculture During the last six years the economic situation for Swedish agriculture has not developed as favourably as that in other EU Member States. The main reason for this appears to be that the relationship between product prices and input prices has been less favourable in than in other countries. An unfavourable relationship between these prices means that an increase in the price of an input due to a charge or tax may affect competitiveness. The competitiveness of agriculture depends on several factors. since joined the EU, various support instruments have been a substantial element of agricultural income. It is therefore difficult to assess the real impact on competitiveness of the taxes on commercial fertilizer and pesticides. Agriculture in and the other EU Member States is governed by the Common Agricultural Policy. Since is currently the only country that has a tax on commercial nitrogen fertilizer, Swedish farmers have to pay a higher price for this nitrogen than farmers in other countries. This has affected the competitiveness of Swedish agriculture. The question is: how much? On the basis of the available information, the Inquiry can only conclude that the impact of the fertilizer tax on the international competitiveness of Swedish agriculture has been relatively modest. The pesticide tax appears to have had impact on competitiveness. Changes in the taxes Agriculture is today the largest source of nitrogen emissions to the sea. A large-scale action programme has been adopted in order to reduce nitrogen losses from agriculture. The tax on nitrogen in commercial fertilizer is one of several economic instruments and measures included in the programme. The Inquiry also studied some other economic instruments. The systems used in and the , which encourage greater nitrogen efficiency in agriculture, are of particular interest. The Inquiry also studied models that encourage reduced nitrogen leaching. However, none of these have got beyond the model stage in any country. The Inquirys assessment and proposals The Inquiry does not consider it possible to introduce any of the systems mentioned above in the short term, but this may be feasible in the longer term. In that case a system aimed directly at reducing nitrogen leaching should be chosen in the Inquirys opinion. To make it possible to introduce such a system, measures should be taken immediately to provide a framework for methodological development, an improved data base and research and test results. The Inquiry also considered whether the tax base should be broadened. This could be done by levying the tax on the nitrogen content in feed in addition to fertilizer and pesticides. The Inquiry concludes that broadening the tax base by this means is not appropriate. There are a number of problems in this area and there is no guarantee that the tax would be more effective in reducing leaching. The Inquiry proposes that the present tax base be retained. The tax rate should remain the same as before. The Inquiry does not consider it likely that an increase would appreciably improve the environmentally beneficial effect of the tax. should the tax be lowered, since compensation would have to be found for its contribution to reducing leaching, at the same time as it might be necessary to take further measures in order to achieve the environmental quality objective Zero Eutrophication by 2020. Consideration of appropriate measures falls outside the Inquirys remit. As regards the tax on the cadmium content in phosphorus fertilizers, the results of the work now in progress in the EU should be awaited before any changes are made. Chemical pesticides will continue to be used to control weeds and pests in the foreseeable future, both in agriculture and in conventional horticulture. The main purpose of the measures that have been taken so far is to reduce the use of pesticides. Future efforts are likely to focus more on reducing the risks that are associated with the use of pesticides. The use of pesticides is dealt with mainly in connection with the environmental quality objective A Non-Toxic Environment. Under a subobjective related to this environmental quality objective the risks to health and the environment associated with the production and use of chemical substances are to be continuously reduced up to 2010 with the help of indicators adopted by the competent authorities. In order to achieve these environmental objectives, all appropriate economic instruments should be used and other measures taken. Taxes are one such economic instrument. In connection with the implementation of environmental programmes it has become increasingly obvious that some objectives conflict with others. One conflict of objectives that has received particular attention is that between reduced nutrient leakage and reduced use of pesticides. There may appear to be another conflict between the objective of competitive and viable agriculture and various environmental quality objectives. The present tax on pesticides corresponds on average to about of product prices. Calculations indicate that a tax rate corresponding to of product prices would lead to a reduction of 4–in the use of pesticides. For the tax alone to appreciably reduce the use of pesticides, the rate would have to be multiplied several times over. The Inquiry has considered introducing other economic instruments as alternatives to a tax, in particular quotas and tradable options to buy pesticides. The present tax is based on the amount of substances in the pesticide. Assuming that the tax should continue to be levied as an economic instrument, the Inquiry considered alternative levying bases. Instead of levying the tax on the basis of the amount of substance, a percentage of the sale price or a predetermined normal dose per unit of area (per hectare dose) could be used. Regardless of which of these bases is chosen, the rate could be differentiated, for example depending on the uses of the pesticide or the harmfulness of the substance to health and the environment. The Inquiry based its analysis on studies of the Danish system of charges, under which charges are levied in relation to the retail price of pesticides, with differentiation depending on their uses, and the Norwegian model, which is based on rates calculated in relation to a predetermined normal dose per unit of area, under which rates differ depending on the harmfulness of different pesticides to health and the environment. The Inquiry emphasizes the importance of ensuring that future measures aimed at reducing the risks associated with the use of pesticides are harmonized at the EU level wherever possible. A thematic strategy for sustainable use of pesticides is being prepared within the EU. Commission has not proposed designing a fully-fledged Community system for pesticide taxes, but has pointed out that that if taxes or charges are to be imposed on pesticides, the Member States should be encouraged to apply differentiated rates for taxes or charges in order to provide users with sufficient incentives to choose pesticides that are less harmful to the environment. The Inquirys assessment and proposals The Inquiry does not regard quotas or tradable options to buy pesticides as feasible alternatives to an environmental levy on pesticides. Such a levy should therefore be retained as part of a package of economic instruments. Various levying models were considered. The Inquiry concludes that the model that, if combined with other economic instruments and other measures, would provide the most effective means of achieving an appreciable reduction of the risks associated with the use of pesticides is one in which environmental levies differ depending on the harmfulness of the pesticide to health and the environment. The Inquiry therefore proposes that preparation for a changeover to a risk-differentiated levy be included as an essential element of the action programme that has been drawn up with a view to reducing pesticide-related risks. The Inquiry proposes that the Inspectorate should be instructed in connection with this preparation to develop a classification system as soon as possible that is based on the harmfulness of pesticides. Risk-differentiated levies could be based either on a predetermined normal dose per unit of area (per hectare dose) or on the price of the preparation. In connection with the development of a classification system based on the harmfulness of pesticides it should be decided which of these alternatives should be chosen as a basis for the environmental levy. An analysis of the two alternatives can only be made when the classification system is basically complete. The choice of levying basis will determine whether the levy will take the form of a tax or a charge. If sufficient resources are allocated, it should be possible to start the changeover to the new system within a five-year period. The Inquiry also considered whether it was appropriate to raise the level of the present tax and, if so, whether a levying basis other than the amount of substances in pesticides should be used during the period prior to introduction of a risk-differentiated model. A substantial increase in the tax might, given the present levying basis, have undesirable effects, such as favouring low-dose agents. A rather large increase in the tax is necessary in order to substantially improve the effectiveness of the pesticide tax as an environmental policy instrument. On the other hand, a drastic increase would conflict with the objective of reducing nitrogen leaching, as well as impairing the competitiveness of Swedish agriculture. Against this background, the Inquiry proposes a moderate increase in the tax rate from to per kilogram of substance. In the Inquirys view, an increase of in the tax rate is not so large as to make it necessary to choose a different levying basis. is there any other reason to change the present levying basis, i.e. a tax on the amount of substances in pesticides, for a limited period. Consequences of the Inquirys proposals In the Inquirys view, an increase of per kilogram in the tax rate will have an effect on the use of pesticides during the next few years. Assuming that the consumption of substance is about 1,750 , it is estimated that the increase will raise gross tax revenue by million. The accrued net effect during the period 2004–2006 and also the permanent net effect in the form of increased tax revenue for the public sector will be over million per year. The Inquiry expects that the increase in costs for agricultural, horticultural and forest enterprises will be moderate. The effect on the profitability of individual enterprises should be marginal. Increasing the charge will help to reduce pesticide-related risks, which in turn will slightly improve cost-effectiveness from an environmental point of view. Proposed amendments to the Tax on Fertilizers Act and the Tax on Pesticides Act etc. Experience of control actions and subsequent court proceedings show that additions should be made to the rules in the Tax on Fertilizers Act and the Tax on Pesticides Act defining who is liable to tax in various situations. The Inquiry proposes that persons who take delivery of fertilizers or pesticides in should also be liable to tax in certain circumstances. Additions should also be made to the provisions of the Tax on Pesticides Act relating to the commencement of tax liability. Amendments to the Tax Payment Act (1977:483) are also proposed, the effect of which would be to shorten the period within which certain taxpayers must submit a special tax return. In order to facilitate control activities, the Inquiry proposes introducing provisions obliging the Swedish Customs to report to the taxing authority when it learns that fertilizers and pesticides have been imported into from another EU country. The Swedish Customs should also notify the taxing authority when fertilizers and pesticides are imported into from third countries. There is no evidence of illegal imports of commercial fertilizer into , but there are suspicions that such imports occur. On the basis of some calculations, the average amount of illegally imported commercial fertilizer in recent years may represent about of total consumption. This would be equivalent to a tax shortfall of about million. There are various reasons for illegally importing pesticides into . One reason is that the prices of such products are lower in other countries. Another is that there are sought-after fertilizers in other countries that are not approved in . According to the market, most illegal imports consist of preparations that are not permitted in . There are also reports of illegal imports of glyphosate products. These reports indicate that pesticides are imported into the country illegally, but there is no solid evidence on which to base an assessment of the volume of such imports. 1 Förslag till lag om ändring i lagen (1984:409) om skatt på gödselmedel Härigenom föreskrivs att 2 och 4 §§ lagen (1984:409) om skatt på gödselmedel skall ha följande lydelse. Skattskyldig är den som Skyldig att betala skatt (skattskyldig) är den som 1.godkänts som lagerhållare enligt 4 a §, 2.i annat fall än som avses i 1, yrkesmässigt tillverkar gödsel- medel, och 3. i annat fall än som avses i 1, 3. i annat fall än som avses i 1, för in gödselmedel till till för in eller i tar emot gödselmedel för användning inom landet. för egen yrkesmässig använd- ning inom landet. En verksamhet är yrkesmässig, om den utgör näringsverksamhet enligt 13 kap. inkomstskattelagen (1999:1229), eller om den bedrivs i former som är jämförliga med en till sådan närings- verksamhet hänförlig rörelse och ersättningen för omsättningen i verksamheten under ett kalenderår överstiger . Denna lag träder i kraft den 1 Senaste lydelse 2002:407. 2 Förslag till lag om ändring i lagen (1984:410) om skatt på bekämpningsmedel Härigenom föreskrivs att 2, 4 och 5 §§ lagen (1984:410) om skatt på bekämpningsmedel skall ha följande lydelse. Skatt skall erläggas med Skatt skall betalas med 25 kronor för varje helt kilogram kronor för varje helt kilogram verksam beståndsdel i bekämp- verksam beståndsdel i bekämp- Med skattskyldig avses i det Skyldig att betala skatt (skatt- skyldig) är den som 1. inom landet yrkesmässigt 2. den som inför bekämp- 2. till för in eller i medel för yrkesmässig återför- för egen yrkesmässig använd- säljning eller för egen yrkes- ning inom landet. mässig användning inom landet. Som tillverkning enligt första stycket 1 anses även blandning av olika bekämpningsmedel och sådan märkning eller dylikt av en vara som anges i 1 § andra stycket 2 som medför att varan anses utgöra bekämpningsmedel. En verksamhet är yrkesmässig, om den utgör näringsverksamhet enligt 13 kap. inkomstskattelagen (1999:1229), eller om den bedrivs i former som är jämförliga med en till sådan närings- verksamhet hänförlig rörelse och ersättningen för omsättningen i verksamheten under ett kalenderår överstiger . 1Senaste lydelse 1995:617. 2Senaste lydelse 1999:1252. 1. den som är skattskyldig enligt 4 § 1 när levereras till en köpare, levereras till en köpare, b. ett bekämpningsmedel tas i anspråk för något annat ändamål ändamål än försäljning, 3. den skattepliktiga verksam- c. den skattepliktiga verksam- heten upphör, varvid skattskyl- heten upphör, varvid skattskyl- ningsmedel som då ingår i den ningsmedel som då ingår i den enligt 4 § 2 ningsmedel förs in till . Denna lag träder i kraft den 1 Senaste lydelse 2002:408. 3 Förslag till lag om ändring i skattebetalningslagen (1997:483) Härigenom föreskrivs att 10 kap. 32 b § skattebetalningslagen (1997:483) skall ha följande lydelse. skatt på vinstsparande m.m. eller 4 § första stycket 2 eller 3 lagen skall redovisa skatten i en (1984:409) om skatt på gödsel- medel skall redovisa skatten i en Den som är skattskyldig enligt 4 § första stycket 2 eller 3 lagen skatten i en särskild skatte- deklaration för varje skattepliktig lämnas in senast efter den Denna lag träder i kraft den 1 Senaste lydelse 2002:400. 1Utredningsuppdraget och dess genomförande Utredningen har som en uppgift att belysa erfarenheterna av nuvarande miljöskatter på bekämpningsmedel och handelsgödsel. Utredaren skall analysera skatternas påverkan på användningen av handelsgödsel och bekämpningsmedel och bedöma vilka effekter skatterna har på miljön. Utredaren skall också bedöma kostnader för uppbörd och kontroll av miljöskatterna samt effekter på jordbrukets internationella konkurrenskraft. Med utgångspunkt i ovanstående analys skall utredaren undersöka om skatterna skall ändras för att deras effektivitet som miljöstyrmedel skall förbättras utan att kraven på kostnads- effektivitet eftersätts. Utredaren skall i det sammanhanget studera alternativa modeller för miljöskatter men även andra former av styrmedel eller åtgärder som fyller samma syfte med undantag av den fiskala effekten. Utredningen skall redovisa hur den delen av handelsgödselskatten och bekämpningsmedelsskatten som inte berör jordbruket skall beaktas, bl.a. när det gäller skogsbruket. Utredaren skall även försöka uppskatta hur stora volymer handelsgödsel och bekämpningsmedel som förs in i landet olagligt från tredje land respektive EU-länder och för vilka skatt således inte betalas. SJV har i rapporten (2000:1) Sektorsmål och åtgärdsprogram för reduktion av växtnäringsförluster från jordbruket lämnat en läges- beskrivning när det gäller sådana förluster samt redovisat möjliga åtgärder eller styrmedel för att nå uppsatta miljömål. När det gäller bekämpningsmedel har SJV och KemI fått i uppdrag att efter samråd med andra myndigheter utarbeta ett förslag till handlings- program för användning av bekämpningsmedel i jordbruket och Utredningsuppdraget och dess genomförande trädgårdsnäringen –2006. Utredaren skall ta del av SJV:s och KemI:s arbete inom de aktuella områdena. Som ett underlag för sin översyn skall utredaren undersöka motsvarande skatte- och miljölagstiftning jämte andra åtgärder i några jämförbara länder, t.ex. , och . Utredaren skall också belysa andra betydelsefulla internationella erfarenheter av olika ekonomiska styrmedel och åtgärder på området. Utredaren skall i sitt arbete beakta om statligt stöd. Särskilt de nya riktlinjerna för godkännande av statligt stöd på miljöområdet – och de begränsningar på medlemsstaternas nationella handlingsutrymme som dessa innebär – skall uppmärk- sammas i sammanhanget (EGT C 37, . Utredaren skall beakta övrig relevant gemenskapsrätt. Som utgångspunkt för utredarens förslag gäller att de eventuella förändringar av skatterna eller alternativa system som föreslås skall vara kostnadseffektiva vad avser administration, kontroll och uppföljning. Effektiv miljöstyrning skall vägas mot administrativ enkelhet. Utredaren skulle ha redovisat resultatet av sitt arbete . Regeringen har i beslut förlängt tiden till och med . Tiden har förlängts ytterligare till och med . Direktiven i sin helhet redovisas i bilaga 1. Utredningen1 inledde sitt arbete . I utredningsuppdraget innefattas två huvuduppgifter. Den ena har varit att utvärdera gällande skatter på gödselmedel och bekämpningsmedel. Den andra huvuduppgiften har varit att undersöka om skatterna bör ändras för att deras effektivitet som miljöstyrmedel skall förbättras utan att kravet på kostnads- effektivitet eftersätts. Arbetet i utredningen har därför varit upplagt så att den första delen av utredningstiden har koncentrerats på utvärderingsuppgiften medan den senare delen i huvudsak ägnats åt frågan om skatterna bör ändras. 1 Utredningen används i fortsättningen som en sammanfattande benämning för den särskilde utredaren och experterna.