Background & Purpose

Sweden's economy is currently in a downturn with inflation still above the Riksbank's target of 2 percent. The government aims to fight inflation, support households and welfare, encourage work, and implement reforms for higher growth.

Proposals & Debate

The government proposed a budget with 1,331 billion SEK in spending and 1,324 billion SEK in income, resulting in a 7 billion SEK deficit. Key proposals included a reinforced ordinary job tax credit, indexing in the calculation of job tax credit for seniors, an expanded expert tax, abolishing the tax on plastic carrier bags, removing the reduction of employer contributions for 15-18 year olds, and changed taxation of redeemed shares in certain cases, as well as a higher age limit for certain deductions.

The Decision

Sweden's Parliament approved the government's 2024 budget, including all proposed spending limits, income calculations, and new tax and fee rules. This means the government's economic policy direction will be followed, as the government's proposals won the vote.

Does this affect you?

  • Working individuals: Will see a stronger job tax credit, meaning more money in their pockets.
  • Seniors still working: Will benefit from an indexed job tax credit and a higher age limit for certain deductions in the future.
  • Businesses employing young people (15-18): Will no longer receive reduced employer contributions for these employees, making it more expensive to hire them.
  • Consumers: Will no longer pay tax on plastic carrier bags from November 2024.

In Practice

  • Many new tax and fee rules, like the stronger job tax credit, will start on January 1, 2024.
  • The tax on plastic carrier bags will be removed from November 1, 2024.
  • New rules for taxing redeemed shares will take effect on January 1, 2025.
  • The age limit for tax deductions for self-employment contributions will increase from 66 to 67 years on January 1, 2026.
  • The reduction of employer contributions for 15-18 year olds will be removed.