Read news from:
Austria
SHARE
COPY LINK

TAXES

New bid to put more cash in pensioners’ pockets

With a year left until Sweden's parliamentary elections, the centre-right government of Fredrik Reinfeldt unveiled plans on Monday to cut pensioners' tax obligations by 2.5 billion kronor ($379 million) in next year's budget.

Published: 3 September 2013 07:31 CEST
New bid to put more cash in pensioners' pockets

“This is going to mean a lot to many pensioners,” Social Affairs Minister Göran Hägglund told the TT news agency.

The tax reduction will leave every pensioner over 65 with at least 100 kronor more to spend each month starting on January 1st, 2014.

The cuts will come though raising the minimum tax deduction for pensioners, providing the greatest level tax relief to those with lower incomes.

The government estimates a single pensioner with a fixed income will end up with about 1,000 kronor more in disposable income in 2014 compared to 2013.

The tax relief measure unveiled on Monday is 1.35 billion kronor higher than figures previously discussed by the Alliance governing coalition.

“I’m very happy to be able to go from 1.15 billion to 2.5 billion,” Hägglund said.

“It’s going to mean a lot to a lot of pensioners. We know that many live at a very low income level, especially women who are getting on in years.”

The opposition was quick to pounce on the measure, however, with Social Democrat economic policy spokeswoman Magdalena Andersson accusing the government of using tax policy to exacerbate divisions in society.

“The problem is that, despite raising this tax reduction, the government’s tax policy as a whole worsens inequality when it comes to how pensioners and wage earners are taxed,” she told TT, pointing to a fifth round of tax cuts for wage earners expected to be put forward by the government.

SEE ALSO: Get the latest exchange rates and transfer money on The Local’s Currency page

“The taxation gap is widening. During Göran Hägglund’s time in the government, these divisions have been implemented and widened and widened and widened. Soon it will happen a fifth time and with borrowed money.”

In contrast, the Social Democrats want to do away with the difference in pensioners’ and wage earners’ taxed bills, a goal that is expected to be costly and one on which Andersson refused to comment.

“We’ll come back to that,” she said.

Meanwhile, the head of Sweden’s National Pensioners’ Organization (Pensionärernas Riksorganisation, PRO) welcomed the tax relief directed toward its members, but cautioned his group was far from satisfied.

“We won’t be happy until the gap between the taxes on pensions and the taxes on wages is gone,” Curt Persson told TT.

TT/The Local/dl

Follow The Local on Twitter

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

Published: 12 March 2024 13:40 CET
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.

SHOW COMMENTS