Sweden Eyes Corporate Tax Cut In Growth Package

by Ulrika Lomas, Tax-News.com, Brussels

09 July 2012

Sweden’s Finance Minister Anders Borg has recently announced the centre-right's government plans to boost the country’s flagging economy with the introduction of a growth package, providing crucially for plans to reduce corporation tax in Sweden.

Borg confirmed that the government now intends to implement a short-term economic stimulus package in the order of around 0.5% of economic output, noting that the proposals will be put forward within the framework of the country’s 2013 budget, due to be presented in the autumn.

The government is currently considering measures aimed at boosting and supporting research and development activities, examining certain infrastructure measures, and considering plans to lower the rate of corporation tax to improve the business climate, the minister indicated.

Alluding to the fact that Sweden now aims to reduce its dependence on the eurozone as a result of the crisis, Borg said that if Sweden is to continue to grow, the country must focus on the emerging markets.

According to Borg, thanks to strong exports and to strong domestic demand, the Swedish economy has performed well so far. However, for the current year the government is now forecasting economic growth of just 0.4%, down significantly from 3.9% last year.

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