Government Proposes Tax Cuts on Electricity, Dance Events, and Commutes

The Government proposes reduced electricity tax and corporate tax in 2026. And reduced VAT at the nightclub. The proposals are no promises but preparations for the autumn's budget negotiations.

» Published: May 19 2025 at 11:18

Government Proposes Tax Cuts on Electricity, Dance Events, and Commutes
Photo: Johan Nilsson/TT

The proposal for a new electricity tax is 41.1 öre/kWh. Today, the electricity tax is 43.9 öre/kWh.

At the same time, a proposal for a reduced VAT, from 25 to 6 percent, on admission to dance events, to "promote dance and culture", as stated in the government's memorandum. By dance, it means here, for example, dance band events, nightclubs or discos where there are clearly defined areas for dancing.

Furthermore, the government is announcing a reduced corporate tax, with 0.6 percentage points to 20 percent.

Another tax proposal is relief for those who commute collectively to and from work and where the monthly ticket is paid by the employer.

But it is only a proposal. Whether they are introduced depends on the current economic situation and the reform space, writes the government.

At the same time last year, the government proposed that the electricity tax would be frozen in 2025. That did not happen.

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TTT
By TTTranslated and adapted by Sweden Herald
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