Swedish government to reduce taxes and business rates earlier than planned


Tuesday, 12 April 2011
The Swedish conservative government feels that the strong economy the country is experiencing which they preceded is gradually ushering them to the next phase - the phase of tax reduction, individual and company operation cost reduction as well as means to prop up the jobs market.

Wring on the debate page of the Swedish daily, Dagens Nyehter, the leaders of the four parties that make up the ruling Alliance bloc points to the fact that they are gradually reaching the core of meeting their election manifesto pledges. That the strong economy creates conditions for then to early that thought to lull the legislature to “implement key elements of our election manifesto”.

Leader of the conservative Moderate party and the Prime minister, Fredrik Reinfeldt, Jan Bj�rklund of the Christian Democrats, Maud Olofsson of the Centre party, and G�ran H�gglund of the people’s party in a joint declaration also announced that on 13 April, their Government will presents its Spring Budget Bill to Parliament, with proposals on the framework for the state budget.

“We believe in Sweden. Our country has industrious, enterprising and entrepreneurial people. It was by utilizing the power that Sweden once was rich and developed as a country. When the financial crisis hit, it was an active and prudent policies, together with human effort and sacrifice, which made us to stand against. Now, when it’s getting better in the economy, we are continuing working to build a strong Sweden,” they wrote.

They point that Swedish economic growth is currently high, public finances are strong and unemployment is falling. This, they reiterate opens the door for more reforms. Their strongest areas of concern are summarised in a 5 point motion which steps are already being taken to strengthen to lead to a safe growth regime.

Their idea of safe growth is to design policies that provide jobs without overheating the economy as well as strengthening the quality of education and welfare.

The financial sector, which is often a source of imbalances, should not be allowed to put the economy reeling. Therefore Sweden is to go ahead of other countries to ensure a robust financial system.

“If the economic situation permits, provided that significant reforms to welfare and education can be secured, we plan to implement some of the tax cuts announced earlier in the reform ambitions,” they add.

Before this autumn's budget proposal for 2012, there are some pertinent sectors – 5 point sectors that some work need to be carried out in so that sweden will remain on top of its game. The focus is on the following:
1 More people into work.
“We can grasp the long-term challenges of globalization and strengthen policies for more jobs and more people into work,” they continue.
The goal is to attain or get closer to the dream of full employment. Despite concerns in other countries, Sweden today is showing an economic growth envied by most and they are determined to stay on this prestigious position.  An additional tax deduction for all who work and increased motivation for all the labour unions such as TCO and SACO-groups through lower taxes limit on state income tax, combined with lower taxes for pensioners and a reduced VAT in restaurant is priority.

2 A robust financial system.- “The financial crisis has taught us the importance of a stable financial system and its importance to the economy. In order to secure financial stability, measures to counter risks associated with household debt and the banks' risk and exposure in foreign countries must be examined” they wrote.

As such they plan to look at ways to strengthen banks' own capital in order to make them more resilient. They also want to extend the existing transitional rules for the Swedish banks' capital adequacy.

3 A high-quality education.
A good education will strengthen Sweden's competitiveness and improve people's life chances. It is also one of the most important investment in the justice we can do when a good education increases the chances of a future job. Alliance Government has already adopted a series of reforms to make 2011 and 2012 to two of the most intensive reform period in Swedish education’s history.

4 High quality Welfare.
The public and jointly-funded welfare to maintain the highest quality and available to everyone. Alliance Government has implemented a number of reforms for improved quality, more choice and better access to welfare. Above all, they want to reduce Social exclusion.

5 Sustainable growth in all parts of Sweden or balanced development.
Conditions for conducting business, work and live in all parts of the country will be improved.
Sweden will benefit from the energy conversion in green industries and people's interest in tourism, local food and experiences in nature. Good accessibility to services and the digital and physical infrastructure are essential ingredients for sustainable growth in Sweden.
By Team

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