Denmark’s Green Tax Programs
Throughout the past decade, Denmark has integrated environmental considerations into its tax system for a wide range of products and services that adversely effect the environment. As a result of Denmark’s green tax reform, consumers have demanded cleaner products and industry has invested in materials and processes that have less impact on the environment.
A Sampling of Denmark’s Green Taxes
Tax on Chlorinated Solvents
Chlorinate solvents have a wide range of environmental effects ranging from damaging the ozone layer to causing harm to the human nervous system, as well as being a suspected carcinogen. The tax has greatly decreased the use of chlorinated solvents while increasing the use of safer alternatives.
Tax on PVC and Phthalates
Due to concerns over the adverse health impacts from exposure to dioxins and phthalates, all products (including those that are imported) with a PVC content greater than 10% of the product’s weight are taxed. The tax is apportioned to the PVC weight of the product, which rewards companies who minimize the use of PVC. The tax is reduced if the manufacturers established that the PVC contains no phthalates.
Tax on Plastic and Paper Bags in Retail Shops
Denmark placed a tax on plastic and paper bags with a volume of more than 5 liters to discourage the continued use of disposable bags.
The Danish Ecological Council website has a complete guide to Denmark’s ecotax program.