Hägglund calls for wealth tax amnesty

Christian Democrat leader Göran Hägglund would like to see the introduction of a tax amnesty for Swedes who have hidden money abroad.

Swedish wealth tax is to be halved next year, before being fully withdrawn in 2010.

As the change takes place, Hägglund proposes allowing people to bring money back into the country without risk of censure, Svenska Dagbladet reports.

“The abolition of wealth tax alone will not bring all of this money home. I believe that an amnesty could prove very important,” said Hägglund, while conceding that the basic idea will need a lot of work before being implemented.

The government has not yet expressed a view on the subject, although finance minister Anders Borg is somewhat sceptical.

A number of EU countries have previously introduced introduced similar schemes. An Italian amnesty from November 2001 to May 2002 led to the return of the equivalent of 550 billion kronor.