Sweden Pauses Automatic Tax Hike, Saving $1.1 Billion
FILE PHOTO-A view of the Swedish Parliament House in Stockholm, Sweden, July 16, 2023. REUTERS/Tom Little/File Photo Acquire Licensing Rights
Introduction
STOCKHOLM, Sept 3 (Reuters) – Sweden’s government will pause an automatic hike in the threshold for paying state taxes this year, Finance Minister Elisabeth Svantesson told the Dagens Nyheter, saving around 12 billion Swedish crowns ($1.1 billion).
Details
- The threshold for paying an additional state income tax over and above local taxes is usually raised in line with inflation and mainly benefits the wealthy.
- With prices having soared over the last year, the right-of-centre government will pause this year’s increase.
- “We need to fight inflation, we need a restrained budget,” said Finance Minister Elisabeth Svantesson.
- State income tax of 20% kicks in on income above a threshold of around 51,000 crowns a month.
- The re-rating of state income tax is usually part of the autumn budget, which will be published on Sept. 20.
($1 = 11.0315 Swedish crowns)
Reporting by Simon Johnson; Editing by Hugh Lawson
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