Friday, March 27, 2015

Gasoline tax by 44 cents – Swedish newspaper Svenska Dagbladet

In the election campaign did not want the Social Democrats raise the gasoline tax. But when they turn gives the Finance Minister Magdalena Andersson two explanations:

– Oil prices have fallen by 50 percent, it is the one that has happened. The second is that we are in government with the Green Party.

The Government proposes that the energy tax on petrol increased by 44 cents a liter and diesel by 48 cents. At the same time raised the tax on liquid biofuels correspondingly, according to the proposal.

Energy and carbon taxes will continue to be raised in line with the development of GDP. To the increases will not hit the agricultural and forestry sector, the sector will be fully compensated for the increase in energy tax on diesel.

The increases proposed to enter into force on 1 January 2016.

The Government proposes also that the tax exemption is reduced on E85 and low-blend ethanol with reference to EU rules stating that biofuels should not be much cheaper than fossil fuels.

Overall, the proposals to increase tax revenues by 4.1 billion in 2016.

The Government also proposes that the first step is to abolish the reduced employer contributions for young people on August 1 this year. It will give the state an income gain of approximately SEK 5.5 billion. Additional steps taken next year and 2017 gives the abolishment of SEK 18 billion in tax revenue.

Other news is that the RUT deduction will be halved to 25 000 per person next year, while the RUT deduction for homework disappear already this year.

The Government also proposes higher taxes on savings in investment savings account (ISK) and in the endowment. The increases are expected to increase tax revenues by two billion in 2016.

The taxes to fund several major initiatives in the coming years says Magdalena Andersson, including housing.

– We inherited the deficit of 80 billion in order to make these investments, we must find funding, she said.

These measures did not impress Emil Kallstrom, economic policy spokesperson for the Centre Party.

– Now the Government is unfortunately presented with the tax increases young people’s job as we feared. They had perhaps naively hoped that it would Sansa here. It is completely wrong position when many young people have to enter the labor market. It is Sweden young people who pay, he says to SvD.

Meanwhile, the reform criticized for being expensive and inefficient?

We find it is much better to lower the cost of creating real jobs and provide opportunities to support themselves and career. Option from the left direction is different measures that we know are ineffective, says Emil Kallstrom.

Is not it timely to raise the gasoline tax when the price dropped by 2 dollars?

-So it is, but we are focusing on other things to ask about the vehicle fleet and invest in renewable, we said in the campaign that it’s the wrong position to impose more taxes.

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