Tax break for restaurants 'created no jobs'
The Swedish government hoped that a lower tax on restuarant meals would lead to new jobs in the service industry. But one and a half years after the introduction of the VAT cut, the level of employment in the restaurant and hotel sector has not increased, according to figures from Statistics Sweden. The sales tax on restaurant meals was slashed from 25 to 12 percent in January 2012.
Radio Sweden spoke to Björn Arnek, an economist with Visita, the restaurant industry's employers association. He thinks the government agency have got it wrong by comparing volatile data from only two separate months.