(Bloomberg) -- Sweden’s government will cut income taxes in 2025 in a boost for households that have seen their purchasing power eroded by rising prices and borrowing costs.
The measure in next year’s budget will cost about 13.5 billion kronor ($1.31 billion), with another 4.4 billion set aside to make some savings in stocks and mutual funds tax exempt. It comes as the center-right government has pledged to step up its support to households after declaring victory against inflation, which has previously prompted the cabinet to hold back on spending to avoid fueling further price increases.
“Regular wage-earners have seen their salaries as well as savings lose value,” Finance Minister Elisabeth Svantesson said at a news conference in Stockholm on Monday. “Now we are doing what we can to get the wheels spinning again.”
The government has said it expects to submit a budget that contains additional measures, including support to households and infrastructure spending, totaling about 60 billion kronor. The full budget proposal will be presented Sept. 19.
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