Swedish Government Proposes Tax Cut On Earned Income In Budget

Sweden’s government proposes a tax cut on earned income to be included in its budget for election year 2026, adding to its earlier initiative to reduce value-added tax on food.

• Government proposes lower taxes for workers and pensioners through a strengthening of earned income tax credits and an increased basic tax credit, Finance Minister Elisabeth Svantesson says at a news conference
  • The proposals would come into force Jan. 1, 2026 and cost around 21.4 billion kronor (€2.3 billion)
• Government also proposes cut to tax on electricity bills, costing 6.5 billion kronor
  • “We can make these changes because we have strong ...