Sweden reduce VAT from 25 to 12 percent.

12-01-2012

Changes starting from 01.01.2012

[...]

With estimates of the Swedish Association of Hoteliers and Restaurateurs, VAT reduction will contribute to the creation 15 thousand working places in whole Sweden. The organization claims, that the tax reduction will also reduce unemployment among  young people. The Swedish government decided to reduce VAT on restaurant services, hoping primarily to create new working places.

The lower tax rate also increase competition and reduce bureaucracy. The government assumes,  that it will also contribute indirectly to the development of the tourism sector. Tax reduction is also a response to the signs of the impact of economic slowdown on the economy of the euro area of Sweden.

Reducing the tax will cost the state budget in 2012, 5.4 billion kroner (814 million dollars), and in subsequent years - 3.6 billion kroner (543 million U.S. dollars). The Swedish government could afford it because of the good economic situation of the country.

Source: PAP

 

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