This means that the government's effort, with several changes that come into effect on April 1, is well balanced, according to the Minister of Finance.
"You can also safely say that it is very well-timed," she says.
Risk of increased food prices
She points, among other things, to the halving of food VAT, which will provide 6,500 kronor per year to what she describes as an ordinary family.
The VAT reduction comes at a time when supply disruptions and higher transport prices as a result of the war in Iran risk raising the food industry's costs, which normally leads to price increases for consumers.
Svantesson does not rule out more measures in the near future to ensure that the recovery in the Swedish economy does not falter.
"We will also present a spring amendment budget quite soon, on April 23, where we will also facilitate and build protective barriers for Swedish households."
The Commission monitors
To monitor that price increases are reasonable, the government has appointed a commission, which has already reported that there have been no unreasonable price increases since the government proposed the VAT cut last year.
Svantesson also expects that grocery chains will be monitored by consumers and private initiatives, such as Matpriskollen.
"It should be reasonable and fair. That's the whole point," she says of the price increases feared due to the war.
Another measure she highlights is that employer contributions for young people are reduced, while the mortgage ceiling is raised and the stricter amortization requirement for highly indebted mortgage borrowers is abolished.
"We have also made the first 300,000 in the investment savings account tax-exempt," says Minister of Financial Markets Niklas Wykman (M), who is also participating in the press conference.
The VAT on food in stores will be halved from 12 to 6 percent as of April 1. The reduction also includes takeaway food from restaurants and cafes, while the VAT on food consumed on site will remain at 12 percent. Shipping fees for courier deliveries will continue to be taxed at 25 percent VAT. The tax reduction is temporary and applies until December 31, 2027.
As of April 1, the mortgage ceiling will also be raised from 85 to 90 percent of the home's value. At the same time, the stricter amortization requirement for households with large debts in relation to their income will be removed.
The ceiling for additional loans is simultaneously lowered to 80 percent of the value of the home, and a new rule is introduced that means that additional loans must be included in the amortization value upon revaluation. The aim of the reforms is to lower the thresholds for the housing market for young people and first-time buyers.
Source: Government
