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Sweden to introduce financial institution tax to fund defence enhance

STOCKHOLM:  Swedish Finance Minister Magdalena Andersson stated on Saturday the centre-left coalition authorities would introduce a financial institution tax to assist fund higher defence spending from 2022.

The Social Democrats and Greens stated on Friday that they had agreed with the Centre and Liberal Events, which again them in parliament, to spice up defence spending by 5 billion Swedish crowns ($520 million) a 12 months from 2022 to 2025.

Sweden has been strengthening its armed forces and is anxious about growing tensions with Russia within the Baltic area. Final 12 months, Sweden stated it could purchase the Patriot air defence missile system from U.S. arms producer Raytheon Co (RTN.N) in a 10 billion crown deal.

“The additional (for defence) for 2022 might be financed by a rise in taxes on the monetary sector from 2022,” Andersson advised reporters.

“The banks make large earnings annually and have been large winners from company tax cuts lately,” she stated.

She stated the levy would usher in an additional 5 billion crowns per 12 months. Andersson gave no particulars on how the tax could be constructed.

The Social Democrats have repeatedly raised the thought of a financial institution tax since taking energy in 2014. In 2017 they put such plans on maintain after widespread criticism of the way in which the tax was structured.

Finance Minister Magdalena Andersson repeated her intention for a financial institution tax within the run as much as the election in 2018.

“We’ll come again with how this tax might be constituted, however it is going to be totally different from what has been mentioned beforehand,” Andersson stated, including that the brand new tax would cowl all banks working in Sweden no matter the place they’ve their headquarters.

Nordea, the Nordic area’s largest banking group, just lately shifted its headquarters to Finland from Stockholm.

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