Swedish Parliament Extends Tax Cut on Agricultural Diesel, at Cost of SEK 630 Million in 2027

The decision means that the tax on so-called agricultural diesel will continue to be reduced, at a cost to the state of SEK 630 million in 2027.

The reduction applies, among other things, to fuel used by machinery in forestry and agriculture.

Since Sweden is governed by a caretaker government, which should not present any new initiatives, the issue came up in the form of an initiative from the Centre Party in the Finance Committee.

The tax reduction has been in place since 2022, but has always required a decision each year.