The Swedish government is considering implementing a tax brake to prevent municipalities and regions from raising taxes. An investigation will propose how to introduce this measure and reward tax reductions. Civil Minister Erik Slottner emphasizes the importance of ensuring state tax cuts are not counteracted by municipal tax hikes.
Swedish Government Proposes Tax Brake for Municipalities
Swedish Government Proposes Tax Brake for Municipalities
The Swedish government aims to prevent municipalities and regions from increasing taxes. An investigator will now propose how a tax brake can be implemented and how tax reductions should be rewarded.
– It is important for the government that state tax cuts are not counteracted by municipalities raising taxes, says Civil Minister Erik Slottner (KD).
– It is also crucial that the demographic changes we are experiencing do not automatically lead to tax increases in Swedish municipalities.
Therefore, the government is appointing an investigation to propose measures to counteract tax increases in municipalities and regions. Additionally, the government wants to introduce some form of reward for municipalities that lower taxes.
Previously, there have been systems where municipalities that raise taxes receive lower state grants.
Over the past 25 years, municipal taxes have increased by an average of 2.38 SEK. The largest increases have occurred in commuter municipalities.