Sweden will cut tax and reduce social fees to lighten the burden on enterprises and to boost employment, according to a plan announced by the Swedish government Monday.
Sweden will cut the corporate tax rate to 26.3 percent from 28 percent from 2009 and this would coast around 7 billion kronor (about 1.05 billion U.S. dollars), the government said in a statement.
Sweden's corporate tax rate has held steady at 28 percent since1995 and at the time it was low in comparison with other countries in Europe. Since then, other countries have reduced their own corporate tax rates, bringing the average in western Europe to 26 percent.
The Swedish government will also reduce the social contribution fees paid by employers by around 1 percentage point and make it less expensive to employ young people.
The measures will worth about 16 billion kronor and they will be financed by making adjustment to the tax system, the government said.
"Together with other measures which will be presented in the budget bill, this will dampen the economic downturn and soften the impact on the labor market," the government added. (1 U.S. dollar =6.6667 Kronors)
Source:Xinhua
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