The proposals are included in the upcoming autumn budget and are estimated to cost around 7 billion in lower tax revenues for the state next year.
– With this package, we are investing over 7 billion in 2026, says Minister for Business Ebba Busch (KD) at a press conference together with Minister for Finance Elisabeth Svantesson (The Moderate Party), Minister for Employment Johan Britz (The Liberals) and the Sweden Democrats' business policy spokesperson Tobias Andersson at a press conference.
Give boost
– Reducing the fees will lead to more boost in the economy. This is a good way, together with other measures, to get the economy going, says the Minister for Finance and claims that it would be "irresponsible" not to reduce employer contributions.
The reduced employer contributions will apply to young people who turn 19 next year and up to 23 years old.
The proposal means a reduction of approximately one-third of the current fee and the rules will apply from April 1 next year until September 2027. The proposal is estimated to cost around six billion.
The hope is that it will provide more jobs for young people in service industries such as trade and restaurants. When the alliance government reduced the fees in a similar way about 15 years ago, an evaluation showed that it was a very expensive and less effective measure in terms of the number of jobs it provided. And those who got the jobs were, for example, students and people who had relatively good chances of getting a job anyway – not those who are farthest from the labor market.
– It is a significant stimulus for existing businesses, it would have been wrong a few years ago, now it is right, says Ebba Busch.
Can withdraw more
The changed tax rules for closely held companies are estimated to cost around one billion for the state and are said to affect around 60,000 entrepreneurs.
– The biggest change is about how much dividend you can withdraw, says Minister for Employment Johan Britz.
He gives an example of what the proposed change to the so-called threshold amount in the 3:12 rules, i.e. the amount that an entrepreneur can withdraw as dividend, with lower tax than salary.
– If you are the sole owner today, you will be able to withdraw 100,000 kronor more in low-taxed dividends, says Britz.
