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Government to scrap private pension tax breaks

Published fredag 14 november 2014 kl 15.05
"They will have to pay tax twice"
(4:04 min)
Photo: Viktor Mattsson/Sveriges Radio.
Photo: Viktor Mattsson/Sveriges Radio.

Many Swedes who have chosen to use private pension schemes are now at risk from being hit by double taxation, if the government's budget is approved.  

Two to three million people in Sweden use private pension schemes that are currently tax deductible. But the government plans to drastically reduce the amount of tax one can draw off a private pension, from SEK 12,000 as it is today to just SEK 1,800 crowns. The tax deduction will completely disappear in 2016.

The proposal is included in the budget bill and if the budget goes through on December 3, the new rules will take effect just four weeks later. But the time is too short for all private pension savers to have time to cancel their savings and find another retirement savings scheme, say some banks, insurance companies and policy holders.

Radio Sweden spoke to Björn Dickson from Swedish Radio's Economics department who explains more.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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