SHARE
COPY LINK

BUDGET

High earners and men – the winners of Sweden’s new budget

Swedish Finance minister Magdalena Andersson presented the national budget on Wednesday to much criticism – including from within her own party.

High earners and men – the winners of Sweden's new budget
It's the first main budget put forward by the new government. Photo: Jessica Gow/TT

Reporters were flocking around the minister as she walked the 300 metres from the finance ministry to parliament in Stockholm, a tradition known as budgetpromenad ('the budget walk') in Swedish.

She fielded questions about how a Social Democrat minister – a party built on welfare and equality – could put forward a budget where the two winners that would benefit from tax cuts were men and high earners.

The budget includes tax cuts to the tune of 16 billion kronor, with only eight billion kronor for welfare services. Most of the tax cuts apply to high earners, although pensioners are also in line for tax breaks. Read more about the budget here.

“I stand by the budget on the whole, but as always when you cooperate broadly in politics you have to both give and take,” Andersson told the TT newswire when asked what aspects of the budget she liked the least.

DON'T MISS: What the new budget means for international residents

The Liberals and the Centre Party, both of which for the first time had collaborated with the ruling Social Democrats and Greens on a main national budget, had mostly positive comments to give on Wednesday.

But no shortage of criticism was heard from the other opposition parties: the Christian Democrats, Moderates, Sweden Democrats and not least the Left Party, the Social Democrats' traditional budget partner which this year was squeezed out of negotiations following January's four-party deal.

Heavy criticism also came from within the Social Democrat party itself, who found the abolishing of the austerity tax for high earners a bitter pill to swallow. “You're pouring money over the rich,” said Karl-Petter Thorwaldsson, head of the Swedish Trade Union Confederation (LO) for blue-collar workers.

Andersson readily admitted that the move, pushed through by the Liberals, was not the Social Democrats' preferred choice. But she argued that on the other hand, the budget also included investment in police and the justice system, municipalities and pensioners.

“Our elderly will get more money in their wallet but it will also be possible to hire more nurses and teachers,” she told TT.

READ ALSO: Does Sweden's tax system really screw the rich?

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.

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