Sweden’s government will cut income taxes in its 2024 budget, in an effort to increase incentives to work as well as providing some relief to households who are reeling under rising cost of living.
The measure, which is primarily aimed at low- and middle income earners, will cost about 11 billion kronor ($1 billion). It follows the fastest food price increases in 70 years and rapid inflation on services that the country’s central bank is struggling to curb. The center-right government has pledged to run a cautious fiscal policy to avoid fueling further price increases, and will finance the tax breaks by nullifying an automatic reduction in the levy paid by high earners.
Source: Bloomberg
