Swedish Budget Promises ‘Good Times For All’

by Ulrika Lomas, Tax-News.com, Brussels

22 September 2004

Announcing the 2005 government budget, Sweden’s Finance Minister Bosse Ringholm on Monday unveiled plans to cut taxation by almost €1 billion, in what has been dubbed an election year budget without an election.

In all, taxes will be cut by a total of SKr8.1 billion (€891 billion) in a budget that will also see an increase in public spending.

In addition to the cut in income tax, two other key measures include the abolition of gift tax (applied to gifts with a value greater than SKr10,000) and inheritance tax, at a cost of SKr2.6 billion.

"It is good times from all views," observed Ringholm.

The Social Democratic government of Goran Persson plans to finance the tax cuts in part with increases in fuel and energy taxes worth around SKr3.3 billion.

However, Mikael Odenberg, finance spokesman for the main opposition conservative Moderate party, warned that the budget may lead to an overheated economy.

"This is an election budget although it isn't an election year,” he suggested.

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