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Government proposes major tax cut plan

The government is set to propose 15 billion kronor ($2.2 billion) in tax cuts designed to benefit working Swedes.

Published: 16 September 2008 08:28 CEST

Government proposes major tax cut plan

The package will be one of the main points in Prime Minister Fredrik Reinfeldt’s speech at the opening session of the Riksdag on Tuesday.

The measure is a sign that the Moderate Party appears to have triumphed in its negotiations with the other parties which make up the centre-right Alliance government.

Included in the figure is what the government is calling the third step in its employment tax rebate, directed primarily at low- and middle-income earners.

The measure will provide an average of 225 kronor more every month after taxes, and up to 250 kronor.

At the same time, the government wants to raise the upper limit for incomes subject to the national income tax from a monthly salary of 28,400 kronor to 31,700 kronor next year.

The change will reduce the number of people required to pay the additional tax, and in so doing reduce their marginal tax rate from 51 to 31 percent, according to the government.

In addition, 16 billion kronor will be used to lower social fees paid by employers for the workers they hire, reduce corporate taxes, and changes to rules to improve conditions for small businesses.

The government’s plans were presented by the four Alliance party leaders, Reinfeldt, Maud Olofsson, Jan Björklund and Göran Hägglund, in an article published in Tuesday’s Dagens Nyheter (DN) newspaper.

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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