STOCKHOLM (RockedBuzz via Reuters) – The Swedish government will suspend automatic increases in the threshold for paying state taxes this year, Finance Minister Elisabeth Svantesson told Dagens Nyheter, saving some SEK 12 billion (SEK 1.1 billion dollars).
The threshold for paying an additional state income tax on top of local taxes is usually raised in line with inflation and primarily benefits the wealthy.
But as prices have skyrocketed over the past year, the centre-right government will halt the hike this year, Dagens Nyheter newspaper reported.
“We have to fight inflation, we need a tight budget,” said Dagens Nyheter quoting Svantesson.
The state income tax of 20% hits incomes above the threshold of around 51,000 kroner a month.
The state income tax reassessment is usually part of the fall budget, which will be released on September 20.
(This story was re-archived to correct the spelling of ‘Sweden’ in the title)
($1 = 11.0315 SEK)
(Reporting by Simon Johnson; Editing by Hugh Lawson)