Published 19 September 2021 at 09.35
Domestic. Last year's defense decision means five new regiments and is the largest investment in Swedish defense in modern times – calculated in kronor. The government is now announcing new tobacco and alcohol taxes as well as stricter taxes on dividends to foreign shareholders to finance parts of this.
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During 2021–2025, there will be a more than 40 percent increase in the level of military defense compared to 2020.
The hefty funding may be due to the fact that the United States has instructed Swedish politicians to prepare Sweden to join NATO, even though no such plans have yet been announced to the public. The United States demands that NATO member states invest two percent of their gross domestic product, GDP, in defense.
Three tax proposals will now increase tax revenues from 2024.
– To continue to strengthen military defense in in accordance with the defense decision is prioritized. We are now presenting parts of the funding for 2024, says Minister of Defense Peter Hultqvist (S).
The proposals are about increased tax on alcohol and tobacco and a new increased withholding tax on dividends to foreign persons who will replace the current coupon tax. The forthcoming proposals are expected to increase tax revenues by around SEK 1.25 billion annually from 2024.
Withholding tax is the tax that foreign owners pay on dividends from Swedish companies and funds. The withholding tax will replace the current coupon tax.
The withholding tax proposal alone is estimated to increase central government revenue by SEK 0.23 billion per year. The effect comes mainly from reduced tax evasion due to the Swedish Tax Agency being given increased control possibilities.
In addition to upgrading the defense, the new tax revenues will be used for grant immigration from the third world and to pay off loans on various support packages such as companies and special interests received under the corona, although the government prefers to emphasize its major investment in defense as a reason for tax increases.
The amendments are proposed to enter into force on January 1, 2024.