Sweden: The government raises income taxes on salaries above 50,000 SEK (Cont’d) – Dagens Industri

Sweden: The government raises income taxes on salaries above 50,000 SEK (Cont'd) – Dagens Industri

Sweden: The government raises income tax on wages above SEK 50,000 (Continued)

                  2014-10-06 16:20
             

 (SIX), the new red-green government today proposed among other things that  income tax should be raised for anyone earning over approximately SEK 50,000  a month next year. The reduced payroll taxes for individuals  under 26 are proposed to be removed in two stages.       It reports Swedish Radio. The Ministry of Finance has also three  memoranda submitted proposals described as "current that is presented in  Budget for 2015 ".       The new tax proposals will be included in the autumn budget and applies  for 2015, where the scale-down of the earned income tax credit should be gradual.  It starts with a small rate at SEK 50,000 and the income  over 123,000 kronor disappear earned income tax entirely. The proposal  expected to increase tax revenues by about 2.36 billion by 2015.       The special payroll tax is under the proposals partially reinstated  for persons under 65. Payroll tax is proposed at 8.5  percent and is expected to increase tax  revenues by about 2.34 billion  crowns by 2015.       The tax on pensions will also be lowered. As a first step  abolished the difference in taxation on incomes up to 120 000  per year. Under the proposal reduces the tax by SEK 120 in  month, which is expected to reduce tax revenue by 1.98 billion  crowns by 2015.       A limitation of the list of state income tax  is also expected. The agreement between the government parties will also discuss  fewer taxes in the environmental area where it gets increased tax on  pesticides, waste and an increased tax on nuclear generation  electricity.       The deduction for tuition, the so-called Lax-RUT, proposed  abolished. The so-called youth discount, which means lower  employer for those under 26, as proposed to be removed in two  step. The first step is a halving of the reduction in 2015  disappearing entirely in 2016.       The latter proposal is expected to increase tax revenues by about  9.60 billion in  2015 and approximately 18.81 billion in 2016,  according to the Finance Ministry.       An increase in excise duties on tobacco is also proposed. The tax on  snuff increased by about 12 percent, the tax on cigarettes by about 6  percent. A pack of cigarettes will then be just under SEK 2.50  expensive and a dose pouches just under 1.50 dollars more.       Deductibility of private pension limited under  proposals by the fixed amount will be reduced from 12,000 to 1,800  per year. The proposal is expected to increase tax revenues by about 3.09  billion in 2015 Alliance government proposed in the spring budget to  deductibility of private pension should be abolished entirely.    Erik Palmung, Mattias Magnusson  mailto: erik.palmung@six-group.se  www.blogg.six.seSIXNews  SIX News