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Government lets down small businesses

A new poll reveals that small businesses feel let down by the government’s lack of support.

The survey was carried out by SIFO Research International for Företagarna, the Swedish association of small businesses.

According to the poll, the ongoing lack of simplified regulations is the biggest sore point for small business owners, despite government claims to have been actively working on the problem since coming to power in 2006.

According to Företagarna’s managing director Anna-Stina Nordmark Nilsson, small businesses are at the forefront of growth and new jobs in Sweden and deserve better, “the Alliance government should be forced to work on this during the summer holidays.”

Lisa Wärn, a spokesperson at the Ministry of Enterprise, Energy and Communications, told The Local that Minister for Enterprise Maud Olofsson “hadn’t commented on the poll as she is in meetings all day.”

Small business owners continue to harbor high hopes that the government will make reforms within taxation. Nearly every third business owner expects improvements regarding taxation, regulations and labor costs in the future.

However, most business owners have absolutely no faith in the government’s intentions to make user friendly reforms within employment law and insurance.

The poll was conducted with 4300 randomly selected companies throughout Sweden. The companies’ size varied from one to 49 employees.

TAXATION

Solidarity tax on rich Swiss extended due to coronavirus

Switzerland’s solidarity tax, levied on the wealthiest Swiss, will be extended by at least a year due to a revenue shortfall caused by the coronavirus pandemic.

Solidarity tax on rich Swiss extended due to coronavirus
Wealthy Swiss will have to pay more under the plan. Photo: FABRICE COFFRINI / AFP

According to Swiss news outlet Watson, the tax has been extended in order to avoid a one billion franc budget shortfall in Switzerland’s unemployment fund. 

Pursuant to the tax, anyone earning more than 126,000 francs per year has to pay a ‘solidarity contribution’ as well as the other mandatory social contributions. 

The tax levied is 0.5 percent of the wage, with employers paying a further 0.5 percent. 

READ: Switzerland's strangest taxes – and what happens if you don't pay them

 

‘Sad news’

The tax, first implemented in 2011, was to expire in 2021 – however Boris Zürcher, head of the Labor Directorate at the State Secretariat for Economic Affairs (SECO), told SRF on Wednesday that it would be extended indefinitely. 

According to SECO, the tax has erased billions of debt from Switzerland’s unemployment fund. 

The onset of the coronavirus pandemic has however forced more and more Swiss to apply for unemployment benefits, meaning that the tax will now be continued. 

Zürcher told the public broadcaster that the extension of the tax was “sad news”. 

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