Sweden's Bold Plan to Revive Its Film Industry: New Fund & Tax Cuts

Reduced biofuel tax and a new film fund of 300 million kronor, partly financed by new fees on streaming services – this is proposed by the film inquiry. With this, we do not reach the top, but we are approaching our Nordic neighboring countries, says the government's investigator Eva Bergquist to TT.

» Published: March 04 2025

Sweden's Bold Plan to Revive Its Film Industry: New Fund & Tax Cuts
Photo: Lars Schröder/TT

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Swedish film is in crisis and without stronger financing, "we risk a situation where the audience abandons us", according to the government's special investigator Eva Bergquist. The film industry has high expectations for powerful measures, not least to strengthen financing.

According to Culture Minister Parisa Liljestrand (M), Swedish film has "both a golden age and an ice age at the same time".

We have done a very competent job in taking on the challenges of film in a well-balanced way and coming up with good proposals, she says after receiving the investigation.

"Fine proposal"

Today, film receives approximately 680 million kronor in state grants (of which 100 million kronor is for so-called production rebates to attract film productions to Sweden), which is low internationally. The film investigation's proposal would increase the funds for Swedish film by approximately 200 million kronor, according to Eva Bergquist.

Parisa Liljestrand does not want to say how much money should be added.

What can be established is that Swedish film is much larger than what is state-financed. I think it's a fine proposal from the investigation that makes it possible to think about broader financing.

The film investigation proposes a new film fund with a budget of approximately 300 million kronor, which will be financed by the state, cinema owners, and streaming services together. Part of this money will go to larger film productions, "expensive films", according to Eva Bergquist.

"Expensive to go to the cinema"

The investigation also thinks, like large parts of the film industry, that the cinema tax should be reduced to 6 percent – the same VAT as other culture – to make it less expensive to go to the cinema.

Cinema owners, as well as streaming services, will contribute to the new fund, the latter through a new fee of 1.5 percent of annual turnover – a low fee according to the investigation.

We can establish that 16 countries in the EU have already introduced this type of fee, we have also wanted to exempt streaming services that are already active and invest a lot in film and series, such as TV4 and Netflix, says Eva Bergquist.

1. A new film fund in the Film Institute. The fund will be financed by the state, cinema owners, and streaming services together. It "should have" a budget of 300 million kronor and will be located in the Film Institute. It will cover both "reformed production incentives" for film productions in Sweden, but also new support for Swedish film.

The incentives should, unlike before, prioritize productions in the Swedish language or the national minority languages, according to the investigation.

2. Reduced cinema tax, from 25 to 6 percent, to make it less expensive to go to the cinema. At the same time, a new fee is introduced for cinema owners who will pay 10 percent of ticket revenue to the new film fund.

3. New fee for streaming services that will pay 1.5 percent of annual turnover.

4. A national film heritage center will be cost-calculated.

5. New film policy goals: a broad film range of high quality, films shown throughout the country, Swedish films that reach a large audience, and a film heritage that is preserved and used.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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