Annika Wallenskog, SKR’s chief economist, says that the current situation is very tough for municipalities and regions, leading some to feel compelled to raise tax rates to balance the economy.
According to statistics from Statistics Sweden, the country’s average total municipal tax is raised by 13 öre. This increase is driven by a 10 öre raise in three regions – Örebro, Dalarna, and Stockholm.
The total municipal tax consists of two parts: municipal tax and regional tax. Looking at the long-term trend, it can be observed that regional tax accounts for almost the entire increase in the total municipal tax since the year 2000.
Risk of further tax increases
The question now is whether this trend will continue. Will increased pressure on welfare, especially healthcare, lead to further increases in the total municipal tax in the future?
”I believe that municipalities will have slightly better finances in the future, so perhaps not as many will raise taxes. However, regions are facing significant difficulties and high pressure, so there is a risk that several regions will continue to raise taxes in the coming years,” says Annika Wallenskog.
Finance Minister criticizes
From SKR, there has been a long-standing call for the state and government to allocate more funds to municipalities and regions. This raises the question to Finance Minister Elisabeth Svantesson (M) of whether it is not her and the government’s fault that regions are now forced to raise taxes.
”Fundamentally, I believe that the municipalities and regions that are now raising taxes also needed to prioritize their core tasks. Municipalities and regions are now receiving the largest investment from the state in a long time, a whole 40% of the reform space. Therefore, I believe that they also need to take responsibility for not raising taxes for ordinary people,” says Elisabeth Svantesson to SVT.
