Sweden to ditch wealth tax

The new government is to make wealth tax a thing of the past. The tax will be halved next year and eventually phased out completely during the coming term, it is to be announced in Monday's budget.

Only four other countries in the EU have similar taxes on private wealth. These are France, Spain, Luxembourg and Greece. Finland abandoned wealth tax at the beginning of this year. Several other EU countries had similar taxes until quite recently.

The rate in Sweden is a tax of 1.5 percent on all wealth above 1.5 million kronor. This will be reduced to 0.75 percent next year.