The government of Sweden submitted to Parliament a budget bill on 15 April 2013 that proposes domestic tax changes. The measures include improving incentives to work, strengthening the income tax credit further and increasing the lower threshold for levying the state income tax. The earned income tax credit aims to support people moving from unemployment to part time or full time work, and by strengthening this credit the government could be seen to encourage individuals to look for work. These measures would however only be introduced when the economic situation allows this.
The budget proposals also include measures for improving the climate for entrepreneurship and strengthening the business environment. A tax memorandum containing the tax proposals for consultation has been circulated by The Ministry of Finance. The proposals would then be referred to the legislative council. If approved, the measures would be effective 1 January 2014 and apply to tax years beginning after 31 December 2013.
