Sweden continues to pursue its green tax shift

Citation

(2005), "Sweden continues to pursue its green tax shift", International Journal of Sustainability in Higher Education, Vol. 6 No. 1. https://doi.org/10.1108/ijshe.2005.24906aab.001

Sweden continues to pursue its green tax shift

Sweden’s government recently published its budget proposal for 2005 re-confirming its “strategy for transforming Sweden into an ecologically sustainable society”. The budget’s key environmental feature is a continuation of the country’s ambitious green tax shift programme.

In 2005, the increase in environmental taxes will total about SKr3.3 billion (€364 million). Many of these will fall on road transport, including increases averaging SKr340 and SKr100 in vehicle taxes on petrol-driven and diesel-driven cars respectively.

Vehicle taxes on light lorries and light buses will rise by 40 per cent. Petrol and diesel taxes will be up SKr0.15 and 0.30 per litre respectively. Electricity tax will be SKr0.012 per kilowatt-hour higher. The increases, “lessened by the lower diesel tax for agricultural and forestry use”, will be offset by higher basic income tax deductions.

In a statement, the finance ministry noted that in 2000 the government had put at SKr30 billion the scope for shifting taxes in the period 2001-2010. In budgets for 2001 and 2002 just over SKr7 billion had already been shifted. In the term of office 2002-2006 a total of SKr12 billionn will be shifted, it said. Further details are available at: www.sweden.gov.se/sb/d/4173/a/30037