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Swedish budget cuts income and electricity taxes

Sweden's right-wing coalition government announced Monday that it would be cutting taxes by around 30 billion crowns (about $3.2 billion), primarily for income tax, in order to boost household economic growth. Elisabeth Svantesson, the Finance Minister, told a press briefing that the coalition government supported by the Sweden Democrats had agreed to allocate approximately 21 billion crowns (about $3.2 billion) for income tax and pension tax cuts and around 6 billion crowns (about $6 billion) for electricity tax reductions as part of these measures.

Svantesson stated that "this is a massive injection in the Swedish economy".

The uncertainty surrounding the impact of U.S. Tariffs has caused Sweden's growth to stagnate this year, despite rate reductions. The budget is intended to help households and the economy as a whole.

The bill for 2026 - a year with general elections - is due in the parliament on 22 September.

The government has announced other measures that will boost the households' incomes in this budget, which is Sweden's largest since the COVID-19 epidemic. These include a temporary food tax cut.

(source: Reuters)