Opposition outlines billion kronor tax hike

Opposition outlines billion kronor tax hike
The left-green opposition has proposed the raising of environmental taxes by a total of 11 billion kronor ($1.52 billion) over the coming two years, as well as reintroducing wealth taxes to raise a further four billion per annum.

Car drivers are set to be the hardest hit with a total of 0.49 kronor added to the cost of a litre of petrol (currently around 13.50 kronor).

Carbon taxes alone will raise three billion kronor in the first year and five billion kronor the following year, according to the proposal presented by the Social Democrat, Left and Green parties in an opinion article in Dagens Nyheter on Wednesday.

Energy companies are set to be hit with an additional levy on “excessive profits” from hydro-electric and nuclear power. The opposition proposal includes a plan to switch from traditional fossil fuels to gas or ethanol and offers 600 million kronor in grants to encourage the construction of more biogas pumps at fuel outlets.

The hikes in petrol taxes are significantly lower than the two kronor per litre announced in the Green Party budget last autumn.

“We have had to compromise,” said Green Party spokesperson Maria Wetterstrand, who considers the agreement to be positive.

The hike in petrol taxes will be “as good as fully” compensated by an increase in travel deductions.

In a further compromise on the part of the Green Party the coalition has agreed to re-introduce wealth taxes, abolished by the Alliance government in 2007.

The left-green parties plan to re-introduce the tax on homes and assets from January 1st 2012, according to a report on Sveriges Television (SVT). The agreement over the tax is reported to be a tough issue for the three parties to agree on as the Green Party has long maintained that the tax was unworkable and deterred capital investment.

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