Sweden Government Plans Income Tax Cuts for 2025

Sweden’s government has announced plans to cut income taxes in 2025, aimed at providing relief to households affected by rising prices and increasing borrowing costs.

The tax reduction measure, as outlined in next year’s budget, is set to cost approximately 13.5 billion kronor ($1.31 billion). Additionally, another 4.4 billion kronor is designated to make certain savings in stocks and mutual funds tax exempt.

Finance Minister Elisabeth Svantesson addressed the media at a news conference in Stockholm, stating, “Regular wage-earners have seen their salaries as well as savings lose value. Now we are doing what we can to get the wheels spinning again.”

The government has indicated that it will submit a comprehensive budget featuring further measures that include support for households and increased infrastructure spending, totaling around 60 billion kronor. The full budget proposal is expected to be presented on September 19.