Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Sweden to Halt Tax Cuts After Next Year to Buoy Public Finances

Don't Miss Out —
Follow us on:

Oct. 18 (Bloomberg) -- Swedes aren’t likely to enjoy further reductions in income taxes after next year until at least 2017, Finance Minister Anders Borg said, citing constraints on public finances.

The government of the largest Nordic economy should instead use the limited fiscal maneuvering room to strengthen education and create jobs, Borg told reporters today in Norrkoeping, Sweden.

“It’s not in the cards to make promises of big, broad tax cuts” in 2015 and 2016, Borg said. “It won’t happen until we have significantly better public finances and an economy that shows that we’re returning to a 1 percent surplus” of gross domestic product, he said.

Sweden’s government last month said it will cut income taxes for a fifth time next year since coming to power in 2006 to boost demand. It won’t reach its 1 percent of GDP surplus target until 2017 after stimulus measures depleted government coffers, the Finance Ministry said Sept. 18. Unemployment has risen in Sweden because of weak demand for its exports mainly from debt-stricken Europe. Sales abroad account for about half of Swedish output.

Sweden should still go ahead with more income-tax cuts once public finances improve since they encourage more people to join the labor force and work longer, Borg said.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman in Oslo at jbergman@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.