• Sweden edition
 
Sweden to slash restaurant sales tax

Sweden to slash restaurant sales tax

Published: 12 Sep 2011 12:33 GMT+02:00
Updated: 12 Sep 2011 12:33 GMT+02:00

The government has set aside more than 5 billion kronor ($757 million) in the autumn budget to lower restaurant VAT as part of a youth-jobs package that also includes a hike in the number places available in vocational training programmes.

Altogether, the government plans to spend 7.5 billion kronor between 2012 and 2015 to increase young people's chances of finding employment.

Included in the package is 5.4 billionn kronor for lowering the value-added tax paid by restaurant patrons and 1.3 billion kronor for additional spots in vocational training programmes.

An addition 800 kronor will be devoted to reducing the marginal effects for young people attempting to make the transition from receiving benefits to gainful employment.

Starting January 1st, 2012, restaurant VAT will drop from 25 percent to 12 percent.

“The point of this measure is to increase opportunities for young people. There are also many immigrants who find their first job in the restaurant branch,” industry minister and outgoing Centre Party leader Maud Olofsson told the TT news agency.

She added that, in addition to helping young people enter the job market, the VAT cut would also boost tourism in Sweden.

Also included in the government's package is funding for 7,500 new places at vocational trainings programmes for the 2012-2013 academic year.

“How this measure develops will depend on the state of the economy,” said Oloffson.

Education minister and Liberal Party (Folkpartiet) leader Jan Björklund said that, in addition to the lower VAT, the government's youth jobs proposals also includes an 1,000 new places at Sweden's folk-high schools (folkhögskolor), as well as provisions for increased student aid.

Social minister and Christian Democrat leader Göran Hägglund added that the government plans to examine a much criticised mechanism whereby people who take extra jobs while studying loose their student aid benefits incrementally as their work income increases.

He said the matter will be investigated during the spring of 2012 with the goal of introducing a new set of rules by the first half of 2013.

“I can't say today exactly how it will look,” he said.

TT/The Local/dl (news@thelocal.se)

Your comments about this article

13:10 September 12, 2011 by MissK
This is really great news on several fronts, and reminds me of a competitive advantage Sweden has in terms of policy, the ability to implement changes quickly. Looking forward to see how this changes the dynamics, the restaurant VAT was a huge deterring factor for me personally in brainstorming food business plans.
13:37 September 12, 2011 by JulieLou40
"An addition 800 kronor will be devoted to reducing the marginal effects for young people attempting to make the transition from receiving benefits to gainful employment"

Wow. That'll go a long way.
13:55 September 12, 2011 by Rick Methven
I just looked at the precept for my dagens lunch

85kr inclusive 25% Moms

Theoretically, next January it should be 76kr inclusive 12% Moms.

What's the betting it will be 85Kr inclusive 12% Moms
14:11 September 12, 2011 by London_Jim
Bang on, Rick.

In the past 10 years, I've experienced VAT cuts in 3 different countries and the only things that have actually reduced in price in each are automobiles and internet purchases.

More profit for the restaurant owners on the cards...
14:22 September 12, 2011 by Åskar
They claim that landlords will be able to employ more staff, which I find quite laughable. I have no doubt that they will just pocket the money and laugh all the way to the bank.

Also taking in consideration that Anders Borg's wife has a background as a restaurateur the whole thing seems very suspicious.
16:37 September 12, 2011 by Great Scott
Correct Åskar, someone who can see through Sweden's incompetent government.

This will have no effect for Sweden's unemployed, the unemployed will continue to work for free under Sweden's crazy phase 3 scheme. No one in their right mind will employ when they can get a free service. The only people to benefit will be restraurant owners as prices will not fall, most owners will say thank you very much and pocket the cuts.
16:48 September 12, 2011 by Rick Methven
currently the VAT rate on take-away's is 125 and eat in is 25%.

I wonder if they will reduce the vat on take-away's or will the take home eat in prices in Asian restaurants be the same?
18:15 September 12, 2011 by swedejane
Does this mean I'll finally get decent service when I eat out? No? Oh, ok...
18:25 September 12, 2011 by KungsholmenGuy
Taxes in Canada for things like restauraunt meals are added at the cash register as a separate item, so any reduction in provincial or federal taxes provides an instant benefit to the consumer.

Agree that we may not see any real benefit in our restaurant bills here, in at least some restaurants, but then these should (in theory) lose market share to the ones that extend the price reduction to consumers.

The biggest tax reduction on restaurant meals in Sweden would of course be to wait until you get home for that one glass of red wine, which can easily cost over 150 SEK (nearly equal to the price of the main course .... ridiculous)
18:51 September 12, 2011 by jamesblish
Yeah, that'll work because we all know corporations are inherently good and will do what's best for the people and their customers at all times.
20:29 September 12, 2011 by bjorkon
You guys need to believe in the power of markets. It seems to work in every other country that most families can afford to eat out every now and then. In Sweden at the moment it's only birthdays and celebrations.

It's not just corporations that run restaurants. Hopefully some of MissK's contacts will open some restaurants now that the business case starts to stack up.

A step in the right direction ..
21:23 September 12, 2011 by Great Scott
@bjorkon

You need to believe in reality, give some people an inch and they will take a mile. The power of markets = greed, greed = recession, look at today's situation, banks and the power of markets say it all.
21:42 September 12, 2011 by bjorkon
So no hope, then? Just accept the status quo? What would make eating out as affordable here as in most other countries?
21:58 September 12, 2011 by summo
it does have to make sense mathematically, as long as the hype gets folk out spending, who might have otherwise stayed in, it works.
23:35 September 12, 2011 by Great Scott
@bjorkon

What a selfish statement "So no hope, then?"

The answer is simple, if the government wants to give tax cuts then give it to the people who really need it, the lower paid for example, of better still fund a program that invests in people not abuse them with their idiotic phase 3. If the government has money to make tax cuts then it has money to employ people. Give honest people a chance to spend money, this is how you get the economy going, not by lining the pockets of those who don't need it.

Phase 3 is a joke, do you know that an employer gets 5,000sek per month for every free worker and there are currently over 50,000 in this position, do your sums.

Invest in people not the people who already have enough.
00:49 September 13, 2011 by Phrozenkiwi
I have no problem with the policy, and I have no problem with restaurants maintaining their prices and increasing their profits (that would make them more likely to hire more people, no?).

What I do have a problem with is the so-called 'reporting' of this issue. Take one of the opening lines: 'The government has set aside more than 5 billion kronor...'

'The Government' has no frikken money to 'set aside' other than that which it takes from taxpayers. It's not 'their' money to 'set aside'.

For the love of Pete, report it and call it as it is - it's 'taxpayers' money. Always was, always will be.
09:52 September 13, 2011 by RobinHood
The idea is that restaurant owners will invest some of the savings they make through paying less tax, by employing new staff. Thereby reducing unemployment amongst those less qualified to get jobs elsewhere. It also relieves some of the economic pressure on restaurant owners who are increasingly giving up and closing down because they can't make any money in a business that requires huge amounts of time, and huge amounts of risk. A land without restaurants is a sad place indeed.

It's been tried and tested elsewhere, and it seems to work to some extent. It's not a panacea for unemployment, that concept only exists in the imagination of people who think giving tax payers' money to the unemployed and poorly paid will make everything alright.
12:01 September 13, 2011 by izbz
LOL... are they sure that by cutting VAT will boost more employment???? If I own a bar, if it is running well and smooth with minimal staff, why would I want to pay for extra staffs? I will just pocket the money instead..But if they were to implement that if I don't employ more staffs then there will b no VAT cut....that will definately force the restuarants and bars to creat more jobs.

Come on that is to cut taxes for the rich and maybe bleed the average working person with more taxes in the future. I don't really trust this present government at all. VOTE Social democrate!!!!!!!!
12:54 September 13, 2011 by captainbirdseye
Most places in central Stockholm charge the same for both take out and eat in even all though take out is 12.5% compared to 25%. I have seen some places that do charge less for take out, but this is rarity. The 12.5% that you should save from take out is just pocketed by the vendor.
09:52 September 14, 2011 by Great Scott
@RobinHood

Let me point out to you in the first place that the REAL Robin Hood was a MAN of the people. A person who cared about others welfare and hated the fact that the rich took more and more as their GREED increased. You as you call yourself "RobinHood" are a Fake.

Having read some of your selfish greedy posts of the past I am not surprised with the tripe you have dished up this time.

Do you not think that 5,000 SEK per month X 50,000 = 250,000,000 SEK a month or 3,000,000,000 a year (going into fat cats pockets) is not a total waste of tax payers money.

You talk absolute rubbish about restaurants closing down, there have never been so many in Sweden as there are today.

As for being tried and tested elsewhere, Margret Thatcher INCREASED VAT on food and restaurants.

What have you got against the poorly paid and unemployed, or is it your selfish greed that controls you.

Are you aware that the number of unemployed is larger than the number of jobs available in Sweden, are you aware that many welfare related jobs such as nursing, home helps and elderly care are grossly under paid?

The world you dream of is the "I'm alright Jack FU!" world. That kind of world where unemployment is high and services are removed creates poverty and unrest, leading to crime and disorder. Does this sound familiar, because it should.

I would really love to know if you are rich or just plain naive.

I have read lately that David Cameron wants punish those responsible for the London riots, So is he going to put Margret Thatcher in prison because it was her ideas and concepts that bought this about, cuts, cuts, cuts and more cuts. When cuts are made it is always the under paid, poor and unemployed that pick up the bill, not the bankers and greedy rich who started all this.

The world will return to the days of the real Robin Hood if something is not done now.
17:47 September 16, 2011 by IWP
Swedish food is crap anyway. Who wants to eat in their over-priced joints. Unless you're first in you end up with the lunchtime slop. Swedes never think to replace/top-up with decent quality, fresh stuff. It's just a daft joke!
09:32 September 18, 2011 by sjuttiosjusköterskorpåsjukhuset
I always thought that eating out in Sweden is terribly expensive. And for what one got and what it tasted like--except for Chinese food--one would've been better to cook at home and stay home.
Today's headlines
BREAKING
Gas leak leaves Sony staff in Sweden hospital

Gas leak leaves Sony staff in Sweden hospital

BREAKING: An Ozone gas leak at Sony Mobile's offices in Lund has put eight people in hospital, with nine others needing to be checked by doctors. READ  

BREAKING
Social Democrats get permission to govern
Stefan Löfven is set to become Prime Minister. Photo: TT

Social Democrats get permission to govern

BREAKING: Sweden's parliamentary speaker has given Social Democrat leader Stefan Löfven the all-clear to form a government. READ  

Vote quirk gives Sweden Democrats extra seats
Sweden Democrat leader Jimmie Åkesson celebrates his party's election success. Photo: Lars Pehrson/SvD/TT

Vote quirk gives Sweden Democrats extra seats

The Sweden Democrats, who became the third largest party in Sunday's election, have learned they will get two more seats than expected due to a quirk in the country's election system. READ  

Ericsson to axe modems and cut jobs
Ericsson CEO Hans Vestberg, pictured here presenting the comapny's quarterly report in July. Photo: Annika af Klercker/TT

Ericsson to axe modems and cut jobs

Swedish telecom giant Ericsson has confirmed it will cut jobs in Sweden and abroad after the company announced on Thursday morning it would stop developing modems. READ  

Elections 2014
Centre party laughs off Löfven's advances
Annie Lööf speaks after her meeting with parliament's speaker on Wednesday. Photo: Fredrik Persson/TT

Centre party laughs off Löfven's advances

UPDATED: Centre Party leader Annie Lööf has reiterated her reluctance to cooperate across bloc lines with Social Democrat leader Stefan Löfven, as he renews his attempts to form a fresh government. READ  

Elections 2014
Sweden Democrats want prized speaker job
Sweden Democrat party secretary Björn Söder celebrates Sunday's election result. Photo: Anders Wiklund/TT

Sweden Democrats want prized speaker job

UPDATED: As Sweden’s third largest party, the Sweden Democrats "assume" they will be given one of a handful of prestigious parliamentary speaker jobs, party secretary Björn Söder tells The Local. READ  

National
Teens in intensive care after school 'initiation'
Photo: Peder Skrivares school

Teens in intensive care after school 'initiation'

School inspectors are investigating after an initiation ceremony at a high school in Varberg in south west Sweden left four girls in hospital. READ  

National
Pirate Bay Swede 'mistreated' in jail
Peter Sunde. Photo: TT

Pirate Bay Swede 'mistreated' in jail

The brother of Pirate Bay co-founder Peter Sunde has questioned the conditions of his brother's Swedish jail, slamming both the institution and the guards. READ  

Elections 2014
Fresh election fears in divided Sweden
Sweden Democrat leader Jimmie Åkesson may not support a Social Democrat budget. Photo: TT

Fresh election fears in divided Sweden

UPDATED: The leaders of Sweden's main political parties have been called to parliament as speculation grows that the Sweden Democrats could hold the key to new elections. READ  

Presented by Stockholm Business Region
Introducing... the Stockholm collection
Photo: Imagebank Sweden

Introducing... the Stockholm collection

Moving to Stockholm, or just dreaming about it? Either way, this is your ultimate guide: for housing, finances, insurance, business, and so much more. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
What's on in Sweden
Politics
How Sweden Democrats went mainstream
Politics
Scandinavia and Scotland: closer links?
Gallery
Property of the week - Eskilstuna
Sponsored Article
How to start a business in Stockholm
Blog updates

17 September

Deep election analysis (Blogweiser) »

"You think you’re bad? Well I’m American. http://www.youtube.com/watch?v=NFbomLID0vU Deep deep analysis on Swedish election results. Vlog post: https://t.co/tjQgfa5Yie #svpol #val2014 #politics pic.twitter.com/oEK5ADFT8L — Joel Sherwood (@joeldsherwood) September 17, 2014 " READ »

 

15 September

Liten, litet, små & lilla (The Swedish Teacher) »

"Hej igen! Have you ever been confused about when to use “liten”, “litet”, “små” and “lilla”? Today I’m going to sort out how use the adjective “liten” (small) and the different forms of it. Liten or litet? “Liten” is the form we will use when referring to a noun with the gender “en”. For example: Min pappa har en..." READ »

 
 
 
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Lifestyle
What's on in Sweden
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Politics
Green Party wants 'better world' for kids
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

863
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN