Bank tax to finance part of increase in defence spending

Bank tax to finance part of increase in defence spending

The Government has agreed with the Centre Party and the Liberals  (press release) to boost defence spending by SEK 5 billion a year from 2022 to 2025. In the autumn of 2020, the Government will present a defence policy bill to the Riksdag, which will be based on the report of the Defence Commission (Försvarsberedningen). 

The Government intends to introduce a bank tax of SEK 5 billion in 2022 and to finance the contribution to the Swedish Armed Forces in 2022 with the tax. The Government will return to the exact form of what the bank tax should look like. It will be compatible with EU state aid regulations (read more). 

During the press conference, Finance Minister Magdalena Andersson (S) said that the bank tax will be different from what was discussed in 2017 when the Government’s proposal for a bank tax received heavy criticism. The new tax would cover all banks operating in Sweden regardless of where they have their headquarters.