Jerky and unfair - criticism of reduced gasoline tax

Published:

Jerky and unfair - criticism of reduced gasoline tax
Photo: Pontus Lundahl/TT

To address the effects of the war in Iran and the closure of the Strait of Hormuz on oil prices, the government has presented another package with a significantly reduced tax on gasoline and diesel, of three kronor per liter, including VAT. The tax reduction is temporary and applies from July to November this year.

But it's not just environmental groups opposing it. The business community is also strongly opposed.

"An excessively abrupt fiscal policy makes predictability more difficult and means that necessary investments to achieve set climate and environmental goals are postponed or not made," writes the Confederation of Swedish Enterprise, among other things, in its response to the consultation.

"Hinders the transition"

The business organization points to the importance of Sweden sticking to the green transition.

"One part of this should be to make fossil-free energy use more economically attractive relative to the use of fossil fuels, including by lowering the energy tax on electricity."

Energy companies in Sweden are on the same track. Lower taxes on fossil fuels only increase uncertainty.

"The proposed further tax cut slows down electrification and the transition to fossil-free fuels," writes the industry organization.

Public transport is losing out

The Swedish public transport industry organization writes in its response to the consultation:

"The proposal will strengthen the competitiveness of car travel compared to public transport and further increase greenhouse gas emissions."

Several of the critics understand that the government wants to curb household cost increases, but:

"When the supply of fuel decreases, it is important that the increased scarcity is signaled through the price. A higher price is a market-based form of resource rationing," writes the Swedish Transport Administration.

Loading related articles...

Tags

Author

TT News AgencyT
By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

Keep reading

Loading related posts...