Swedish Government Pulls Tax Increase Plans to Avert Crisis
- Plans to expand levies on income, small business are abandoned
- Opposition coalition drops plan for no-confidence motions
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Sweden’s minority government withdrew two contested tax increase proposals to avert potential no-confidence motions and get a budget passed before next year’s election.
The Social Democratic-led government on Saturday said it won’t go ahead with a plan to make more people pay state income tax and also backed off raising taxes on small business through changes to the so-called 3:12 rules. These measures would have raised about 4 billion kronor ($502 million) annually.