Government announces tax cut for pensioners

The government has announced plans to cut taxes for pensioners. The proposal means that seniors over 65 with a pension of SKr 14,000 per month will receive an estimated tax cut of SKr 200 each month. Those with a pension of SKr 19,000 per month will receive a cut of SKr 160. Around 1.4 million pensioners, corresponding to 70% of those aged 65 and over, will benefit from the change.

In the run up to the 2014 general election the Social Democrats promised to close the gap between pensioners and those in gainful employment. Announcing the news on Wednesday, Finance Minister Magdalena Andersson said the cut was a step in the right direction.

The measure, which will be presented in the autumn budget, is expected to cost the Treasury SKr 2.1 billion.