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Sweden’s government wants newspapers to pay less tax in an effort to combat fake news

A new proposal from the Swedish government would bring an end to the tax print publications pay on advertising revenue in what is being pitched as an effort to fight fake news.

Published: 29 August 2017 15:52 CEST
Sweden's government wants newspapers to pay less tax in an effort to combat fake news
File photo of Swedish newspapers. Photo: Fredrik Sandberg/TT

At present, print media firms in Sweden pay a special 2.5 percent tax on ad revenue if it is higher than the 75 million kronor ($9.4 million) mark, which outlets have complained makes it more difficult for them to compete in an increasingly tough climate. Now, the government wants to do away with the tax entirely for both daily newspapers and periodicals with at least four editions per year.

It is hoped that the change can help fund more quality journalism in the age of fake news, the government's finance department told The Local:

“Swedish newspapers and journalism are needed more than ever today. And you hear from them that they want this tax removed, so we hope there can be even more investigative reporting if they no longer have to pay it, and perhaps more journalists will be employed.”

“In the time we now live in of online rumours and fake news we think our daily press in Sweden is incredibly important. One way of supporting it is to remove this tax,” Finance Minister Magdalena Andersson said in a statement.

The change would start from January 2018, and the government is also pushing to reduce costs for digital media, the Finance Department said:

“The government also wants to reduce so-called 'digital VAT', but that's an issue that requires consultation and consensus at EU level.”

While EU nations can set reduced VAT rates on print material, they are currently unable to do so with digital media, where the rate is fixed at 25 percent. The European Council is currently working on a proposal to amend that difference, but an agreement has yet to be reached and is now not due until the second half of 2017.

The subject of fake news has frequently been raised Sweden this year. In March, PM Stefan Löfven warned in an opinion piece that there is no reason to believe the 2018 Swedish general election will be exempt from attempts to influence it through false news stories.

In March meanwhile, it was announced that from July 2018 the Swedish school curriculum will include teaching kids how to differentiate between reliable and unreliable sources.

“We need to advance our criticism of sources to the same level as we previously taught students about scientific theory. You already need to have your first taste of this today at about the age of ten,” Education Minister Gustav Fridolin told The Local at the time.

READ ALSO: Swedish school kids learn source criticism in fake news study

READ ALSO: How one Swede made a city the world's 'most dangerous' to expose fake news stats

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Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Published: 30 October 2023 15:21 CET
Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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