STOCKHOLM (Reuters) – Swedish Finance Minister Anders Borg will propose a number of tax rises in the government’s spring budget to strengthen public finances and provide more money for education, he said in a radio interview on Saturday.
The centre-right Alliance, which is lagging in polls ahead of a general election in September, has cut taxes since it took power in 2006, but now says fiscal policy needs to be tighter as the economy recovers after the downturn.
“There is going to be a bit of a firmer grip both on the tax side and on the expenditure side in order to make room to finance a bit more investment in education,” Borg said.
“It is car tax, it is tax on alcohol, but it could also affect a number of other taxes.”
Borg said the government aimed at raising 1 billion Swedish crowns ($155 million) to 1.5 billion Swedish crowns from increased car tax, making an average Volvo around 200 crowns more expensive per year to drive.
Taxes on tobacco will also rise.
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