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Competitiveness / Policy


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Swedish companies are making a form of demands for their government as elections draw closer

Saturday, 17 August 2013
Swedish businesses and its entrepreneurs are not feeling pretty well today and feel that the government need to do more to improve on their climate. As for that, the business community has a list of demands, which they want to government to address otherwise they are ready to decamp to the left wing.

Therefore, in passing its last budget before the election, businesses and entrepreneurs would love that the government to include in its list of demands which has been compiled by the industrials sector on their wish list.

After being in office for a while, the business class has now called on the government for the last time before the next election knowing that the government owns most of the problems they are facing after being in office now for 7 years.  Their argument is that government seem to be tired, lack ideas and not listening to them.
anders Borg
"I think the dialogue between the government and industry has been inane. Lack of interest in the conditions of the industry,  is a very boring part of the Alliance's policies, "says Sverker Martin-Löf, Chairman of Industrivärden and SCA, to Swedish business daily, Dagens Industri. He calls for proper efforts to rehabilitate the country's infrastructure.

Among other, the government's 3:12 rules is one of those that has been largely criticised of recent. This has made industrialists to feel that this proposal is the government's biggest blunder. Therefore, they request that the government look into the possibility of eliminating it as one way of strengthen the business climate in the country

The government's 3:12 austerity rules could be traced back some 20 years ago and was introduced to raise taxes for entrepreneurs. However, the rules are now being used in the opposite way - to reduce the tax for a particular group of entrepreneurs and this is what is stressing small businesses.

Other opponents argue that Small business owners with no employees are disadvantaged and when they sell their shares, there is increased income tax on a portion of their profits, which they are only supposed to pay corporation tax on. The total tax rate will be almost 70 percent for those with income above the threshold for state taxes - while companies with employees get 41 percent.

The government had defended the austerity tax by arguing that if one feel confident that in a voting both a banker needs Skr40 000 more a month, but there is also the need for harmony such that  a nurse earns Skr 400 - if one thinks it will work that way then vote against the austerity tax, Finance Minister, Anders Borg (Pictured above) had said in his speech to the Moderate Party meeting in Gothenburg in March 2013. But industrialist and entrepreneurs hate the austerity tax and would want it eliminated.

Others that should be eliminated include

  • Abolish sick responsibility - that is sickness pay should not fall on the employer.
  • Invest in roads and railways or infrastructure generally.
  •  Lower payroll tax.
  • Abolish the requirement for collective bargaining for the introductory jobs - for new workers of youths.
  • Lower capital taxation.
  • help build apprenticeship to develop skills that are getting scarce.
  • Stop the requirement for monthly reporting - it is too heavy for companies.
  • Increase access to funding and liquidity for small and medium businesses.

by Scancomark.com Team

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