Government policy rejected by tax office

The Swedish tax authority has rejected the government's proposals for tax relief for domestic services.

The centre-right government ran for election proposing to make it cheaper for people to hire cleaners and gardeners, and had set a date of July 1st for new tax breaks to come into force.

Mats Sjöstrand, head of the Swedish tax authority, said he thought the proposal was fundamentally sound, but said it could prove hard to define which jobs qualified for the tax breaks.

Sjöstrand told Sveriges Radio that he feared that it would be particularly hard to sort personal care services into those that were entitled to the breaks and those that were not.

The tax authority has therefore replied to the government’s consultation exercise by recommending that tax relief on care services be looked at further before being put into effect.

The government also wants child care to be subject to tax relief, but this too could pose similar problems. The government proposed that paying someone else to collect children from daycare should be tax deductible, but that taking them to football school would not be.