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Swedish government considers ten billion kronor tax cuts next year

TT/The Local
TT/The Local - [email protected]
Swedish government considers ten billion kronor tax cuts next year
Finance Minister Elisabeth Svantesson. File photo. Photo: Fredrik Surell/TT

The three government parties, along with the Sweden Democrats, have indicated that there could be tax cuts of at least 10 billion kronor next year.

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Negotiations between the parties ahead of the autumn budget, as well as the economic situation, will decide whether any tax cuts make it into the next budget, as well as the size of any cuts which are eventually proposed.

"The way it works is that you state a level and then you can scale it up," finance minister Elisabeth Svantesson told Dagens Nyheter newspaper. "It's a kind of minimum level."

The three governing parties: the Moderates, Christian Democrats and Liberals, as well as the Sweden Democrats, who are supporting the government, explain the tax proposals which are being submitted for approval in a debate article in tabloid Aftonbladet.

"What finally makes it into the budget calculations and what makes it into the autumn budget remains to be seen. The Moderates prioritise lowering tax on work during our mandate period," said Svantesson, who is a Moderate MP.

"But it remains to be seen whether that will be in the autumn budget or next year," she said.

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One of the reasons these tax proposals are being sent out for approval now is that possible changes to taxes need to be announced well in advance of the budget proposal in autumn.

The Finance Department has not yet released the entire proposal, meaning that the information available is not comprehensive.

The proposed tax cuts on work include lower tax for pensioners, a pause to indexing of electricity taxes and taxes on diesel and petrol in 2024 and 2025, as well as lower tax on plastic bags.

There are, however, no plans to lower tax on ISK accounts (which was an election promise), corporation tax or taxes on companies and capital, although Svantesson has said that these have not been ruled out.

"These taxes will be on the table when we come back from summer and start negotiating," she said. "Then we can also see how great the scope for reform is, and that will play a large role."

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