P.M. BRIEFING : Swedish Leaders Want Tax Hike
Sweden’s Social Democratic government said today it will raise indirect taxes, already among the highest in the world, to put the brakes on an overheated economy.
It wants to increase the value-added tax from July 1 until the end of 1990 by two points to 25.46%, but it faces opposition from all five non-government parties in Parliament, where the Social Democrats are 19 seats short of an overall majority.
Besides seeking to raise the value-added tax, Finance Minister Kjell-Olof Feldt also increased a payroll tax paid by employers by an average of 3 1/2 points and raised taxes on alcohol and tobacco. Swedes already pay taxes of 90% on liquor and 65% on wine.
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