Due to the uncertainty surrounding the euro zone the Swedish government set aside on hold the planned tax cuts. According to the government declaration two measures announced in the November 2010 budget will be put on hold. One is tax cuts for pensioners and the other is income tax credits to reduce the tax burden on low- and middle-income earners.
The decision was motivated by uncertainty in Europe and a downgraded outlook for the Swedish economy, though the government expects a surplus in the budget. The tax cuts are going to be revisited at the earliest opportunity, most likely in the 2014 budget.
