(cont. from § 16) Improved rules for Swedish tonnage taxation (cont. SkU29)

Jimmy Ståhl (SD)

Madam Speaker! I would like to ask the Social Democratic member about the motion in the report.

I know that we have a fairly large consensus when it comes to Swedish shipping. More or less all parties in this Riksdag protect Swedish shipping, and therefore I was very surprised when I read about the group-internal bareboat.

We have gone from 20 percent to 50 percent bareboat, so the rules for chartering vessels are quite generous. The problem with intra-group bareboat is that it opens up for tax planning. Money can be sent out of Sweden through intra-group bareboat. That setup is not good for Swedish shipping. We risk losing both labor and readiness.

Therefore, Madam Speaker, I want to ask Kalle Olsson how it is that the Social Democrats have submitted a motion in this matter. Is it the case that one has only listened to lobby organizations and has not understood the content of the motion one has submitted?

Now, the Left Party is not here, Madam Speaker, but that the Left Party can support a motion that enables tax planning and tax evasion surprises me very much.

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Kalle Olsson (S)

Madam Speaker! Thank you, Jimmy Ståhl, for the question!

To begin with, one can reflect on what has happened from the time we adjusted this report in the Committee on Taxation a short while ago until today. Anyone who reads the report sees that the committee majority's view is that if we are to proceed with what the Social Democrats want to proceed with, we need to review the definition that this is about, i.e., what should be included within this. No protests are seen there against proceeding and introducing a one hundred percent possibility when it comes to intra-group leasing. Where were the warning signs during the committee work? There are no such reservations from the majority's side in this part. That was one thing.

The second point concerns the following question: Why should the Swedish shipping industry have worse conditions than neighboring countries and other European countries? The member and I have now each given a speech where we have emphasized the importance of working to strengthen the competitiveness of Swedish companies. The Sweden Democrats, however, cannot go all the way on this issue, but they are holding back.

We are not saying that this should be done in any sloppy way, and we realize that this is a rather complex issue. We do, however, mean that one should proceed and take the next step precisely so that Swedish companies will have equally good, or preferably even better, conditions to operate in this industry.

We all know why this is so important. It is about Sweden's imports and exports and about Sweden's preparedness.

(Applause)

The speech at riksdagen.se, in Swedish (opens in a new tab)

Jimmy Ståhl (SD)

Madam Speaker! It is clear that one must be very careful when it comes to implementing things. That other countries have rules does not mean that these rules are good for Sweden or for the Swedish flag. If intern-company bareboat is incorporated straight away and in an incorrect manner, as it is, we risk losing Swedish shipping and the Swedish flag. If we are even the slightest bit worse, the ships are sent outside the national border.

The problem with intra-group bareboat is that you can have a Swedish company, lease out the ships so that they sail under a Cypriot flag and hire Latvian labor. Suddenly, you move tax funds hipp hipp.

We have de facto increased the possibility for bareboat up to 50 percent. That is very good, but introducing intra-group bareboat is a dangerous path to take. I understand Kalle Olsson's reflections regarding the preparatory text, but when one digs deeper into this, one realizes that we must be very careful.

I have had a dialogue with shipowners regarding exactly this part, and there are concerns. There are certain advantages, but the concerns that we could lose the Swedish flag and lose in readiness make me very worried. Therefore, the Sweden Democrats are not prepared today to introduce intra-group bareboat.

(Applause)

The speech at riksdagen.se, in Swedish (opens in a new tab)

Kalle Olsson (S)

Madam Speaker! With all due respect, Jimmy Ståhl: This is becoming a bit confused. It is dangerous and wrong. It could be right – maybe. I believe we should treat this a bit more seriously.

This should naturally not be incorporated in an incorrect way. We take it very seriously. We have absolutely listened to the industry – we have coordinated, tested questions, and acquired knowledge on the issue.

It is clear that there is a competitive disadvantage for the Swedish shipping industry here, and it is somewhat surprising that the Sweden-lovers in the Sweden Democrats do not see this. It is almost as if I suspect that Jimmy Ståhl is a bit uncomfortable that it is the Social Democrats who want to move the positions in this issue and that the Sweden Democrats feel a bit outmaneuvered, if the expression is allowed.

(Applause)

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Boriana Åberg (M)

Madam Speaker! I remember when the tonnage tax, also called the blue tax, was introduced. It was welcomed by everyone – by the employer organization Sveriges Redareförening, which is now called Svensk Sjöfart, by the trade unions Seko sjöfolk and Sjöbefälsföreningen, and not least by all parties here in the Riksdag. Since the 90s, motions regarding the introduction of tonnage tax had been raised. Two investigations submitted their reports – in 2006 and 2015 respectively – and finally, in 2017, it was completed.

Some may think it is strange that the Moderaterna have fought for the introduction of a tonnage tax, but the tonnage tax is not an ordinary tax but a voluntary one. It means that the shipping companies' income is determined on a flat-rate basis based on the ships' tonnage volume and not based on the actual income. The advantage of the tonnage tax is that the taxable income is independent of actual profits and losses, which can vary greatly depending on the economic cycle.

To qualify for the tonnage tax system, shipping companies must meet certain requirements. At the time of the introduction of the tonnage tax, an important aspect was that Swedish shipping companies should be able to compete on the same terms as shipping companies in other countries. At that time, Sweden and Austria were the only EU countries that did not have tonnage tax. As we know, Austria is not a well-known maritime nation.

Madam Speaker! I remember that there were great hopes that the tonnage tax would lead to more shipping companies choosing to fly the Swedish flag and thereby restore Sweden's position as a maritime nation. Given that one job at sea provides at least four jobs on land, this would contribute to more employment opportunities. Furthermore, more transport by sea would be beneficial for both the environment and the economy because sea routes require significantly less maintenance, especially compared to road and rail.

Great hopes were therefore tied to the introduction of the tonnage tax, but unfortunately, they were not fully realized. One of the reasons is that the tonnage tax system was narrowly and complexly designed. A gross tonnage of 100 tons was required, while the limit in the neighboring country Denmark – a well-known maritime nation – was 20 tons. With the benefit of hindsight, we can state that it should have been realized that in order to entice companies to flag Swedish, better conditions were needed than in competing countries. It is precisely these shortcomings that the government is trying to rectify with the proposals we are debating today.

Madam Speaker! Shipping is an important industry in Sweden, not only because 90 percent of Sweden's total imports and exports are transported by sea, but also for its significance in today's serious security situation. It is natural for a Moderate-led government to create conditions that strengthen – do not hinder – entrepreneurship, investments, and competitiveness.

That the rules for tonnage taxation are now being improved and modernized is a step in the right direction. The changes that are proposed strengthen the competitiveness of Swedish shipping. When the regulatory framework becomes more purposeful and better adapted to reality, the opportunities for shipping companies to choose the Swedish flag increase.

It is particularly welcome that more activities within special shipping are now covered. Towing, icebreaking, cable and pipe laying, as well as other specialized activities play an important role for both industry, the energy transition, and societal functions. When these parts of the industry receive better and more equitable conditions, the entire maritime sector is strengthened.

Furthermore, it is positive that the rules for what shall be counted as qualified vessels are being modernized. That the focus is shifted to whether the vessels meet international competition is more accurate than older, narrower criteria. It makes the system more relevant and better adapted to reality.

The increased flexibility is also significant. The possibility of chartering a larger proportion of vessels without crew means that the fleet can be used more efficiently. It creates better conditions for companies to plan long-term, meet demand, and develop their operations.

There is a motion from the opposition parties regarding so-called intra-group bareboat, meaning that shipping companies should be able to dispose of their ships freely within one and the same group. The reason we move that the motion be rejected is that an unlimited possibility for intra-group chartering of unmanned ships within the EEA would entail a need for a specific group definition for this purpose. It would require a very careful analysis to develop such a definition, including, among other things, the relationship to the tax legislation in other EEA countries. According to the Ministry of Finance, the work on a group definition would take a long time and thus delay the introduction of the new, improved rules.

In the majority text, we, the four parties on the government side, have underlined that we assume that the government follows the issue closely and, if necessary, makes the changes required to further strengthen the competitiveness of Swedish shipping.

Madam Speaker! The proposals in the report mean better conditions for Swedish shipping, strengthened competitiveness, and greater opportunities to retain and develop maritime competence in Sweden. A strong Swedish shipping industry is not just a matter of transport, jobs, and entrepreneurship; it is also a matter of Sweden's ability to stand strong in a restless world.

(Applause)

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Helena Vilhelmsson (C)

Madam Speaker! I would like to begin by moving for approval of the reservation regarding intra-group leasing.

Today we are debating the competitiveness of Swedish shipping. It is a debate that is completely central, I would like to say, for Sweden's future. We agree on that, all parties. The truth is that Sweden is an island. Over 90 percent of our imports and exports go by sea. Without a strong and viable shipping industry, the industry stops, trade falls silent, and our security of supply is jeopardized. Shipping is, in short, one of our most important lifelines. Therefore, it is positive that the government is now presenting a proposal aimed at improving the Swedish tonnage tax system.

Expanding the system to special shipping and increasing the possibility of leasing ships without a crew is a step in the right direction, which the Center Party welcomes. These are measures that can contribute to more ships choosing to sail under the Swedish flag. But it is not quite enough. More can be done.

The government has missed the opportunity to further strengthen the flexibility and competitiveness of Swedish shipping companies. I am speaking about the limited possibility for intra-group chartering of vessels, so-called bareboat charter. The government admits in the bill that the issue is relevant but postpones it to the future, referring to the fact that it is too complicated to produce a group definition right now, which the previous speaker explained in a good way. I have understanding and respect for that.

I believe that the majority understands that we in the opposition nevertheless think it is important to point this out and that we therefore submit this motion. Competing maritime nations already have these rules in place. This means, as already mentioned, that Swedish shipping companies are disadvantaged. They are forced into inefficient and costly solutions instead of being able to use their fleet in the most expedient way. We, together with other parties, believe that the government must return with a proposal that allows unlimited intra-group leasing.

Madam Speaker! Tonnage taxation is important, but to truly lift Swedish shipping, a coherent and long-term policy is required. Our vision is clear. We want to move more cargo from road to sea. It is smart for the climate, it reduces congestion on our roads, and it relieves a heavily strained railway. The Director General of the Swedish Maritime Administration has stated that it is possible to immediately move 10 percent of the cargo from road to sea. That corresponds to 165,000 trucks per year. It is a queue of trucks from Ystad to Haparanda. The potential is enormous, but today it is a bit too expensive and a bit too complicated.

One of the biggest obstacles is the fees, generally. Fairway fees and pilotage fees have been increased in a way that directly counteracts the goal of relocation. It is particularly clear for inland shipping on Vänern and Mälaren, where pilotage costs can constitute up to 25 percent of the docking cost compared to 4 percent at the coast.

Centerpartiet has long demanded a review of this and wants the government to act on the proposals that exist regarding completely exempting inland shipping from fees. It is a concrete measure that would provide a rapid effect.

Madam Speaker! In order for shipping to be able to grow even more, a holistic view is needed. It is about ensuring the supply of competence through relevant education, vocational training, and guaranteed internships. It is about developing a national port strategy that views the ports as the strategic hubs they are in our transport system and not just as a municipal matter. In these turbulent times, as several before me have said, it is ultimately about our preparedness. Having a strong Swedish-flagged merchant fleet with a Swedish crew is a crucial security policy issue.

Madam Speaker! The Centre Party's policy for shipping is a policy for all of Sweden. It is about strengthening the competitiveness of companies, creating jobs along our coasts and in the interior, accelerating the green transition, and securing Sweden's supply.

The government's proposal on tonnage taxation is a step, but Sweden needs a policy that takes substantial steps forward. We urge the government to give Swedish shipping the long-term and competitive conditions it deserves. We are on the right track, but more is needed.

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Cecilia Engström (KD)

Madam Speaker! Sweden is a maritime nation. Our country is dependent on open trade routes, functioning transport, and strong Swedish shipping companies. Almost all foreign trade passes through a ship at some point. Therefore, the conditions for Swedish shipping are not a niche issue for an individual industry but a matter of jobs, growth, supply readiness, and national security.

Today we are dealing with a report on improved rules for Swedish tonnage tax. The Christian Democrats welcome the bill and stand behind the committee's proposal.

The changes aim to strengthen Swedish shipping's competitiveness by modernizing and broadening the tonnage tax system. Among other things, the system is expanded to parts of special shipping. Opportunities to lease out ships are improved, and requirements for international voyages are replaced with a requirement that the operation operates in a market subject to international competition.

Madam Speaker! For a long time, Swedish shipping companies have faced more difficult competitive conditions than many of their European competitors. When ships are flagged out, we do not only lose jobs. We also lose competence, seamanship, and strategic capacity that can be decisive in times of crisis.

The Christian Democrats believe that Sweden needs more Swedish-flagged ships, not fewer. We need a shipping policy that makes it attractive to invest, employ, and conduct operations in Sweden. Therefore, it is important that the regulatory framework follows the developments in our global environment and does not lock itself into outdated definitions or unnecessary restrictions.

The changes that are now being implemented are a step in the right direction. Special shipping, for example certain offshore and cable-laying vessels, are given better opportunities to be covered by the tonnage tax. This creates more equal conditions and ensures that Swedish companies can compete on a European market with more reasonable conditions.

Madam Speaker! The Christian Democrats also see shipping as part of Sweden's preparedness. Experiences from the pandemic, war in our near area, and disruptions in global supply chains have shown that modern societies can be vulnerable. A country like Sweden needs its own maritime competence, its own ships, and a viable shipping industry. When we strengthen the conditions for Swedish shipping companies, we simultaneously strengthen Sweden's resilience. Ultimately, it is about our ability to maintain trade, transport, and supply under all difficult conditions.

Madam Speaker! There are representatives for the industry who argue that further reforms would be needed in the future to fully match the conditions in other countries. That discussion is important and should continue. But it must not become an argument for refraining from the improvements that are now on the Riksdag's table and which this government has implemented.

I and the Christian Democrats choose to take responsibility here and now. We strengthen competitiveness, improve the regulatory framework, and create better conditions for Swedish shipping to grow.

With this, I vote in favor of the proposal in the report.

(Applause)

In this speech, Magnus Jacobsson (KD) agreed.

The speech at riksdagen.se, in Swedish (opens in a new tab)

Helena Gellerman (L)

Madam Speaker! Today we shall debate improvements to the Swedish tonnage tax.

Sweden has large raw material resources and world-leading companies that export the majority of their production to other continents. Shipping accounts for 90 percent of our exports and imports and is therefore very important for Sweden's companies, jobs, and welfare.

The war in Ukraine has simultaneously shown that in order to strengthen Swedish preparedness, we must strengthen Swedish shipping with both Swedish-registered vessels and Swedish seafarers. It is one of the primary motives for why the government has placed a great focus on facilitating the country's shipping.

Madam Speaker! The importance of shipping for our Swedish companies and for our preparedness makes us Liberals want to remove obstacles for the registration of ships to Sweden. We started with the stamp duty for new ships. The stamp duty also had a negative impact on the development towards climate-friendly shipping, because companies with environmentally friendly technology are more expensive and therefore cost more in stamp duty. Therefore, the Liberals, together with our coalition partners, ensured that the stamp duty was removed on July 1 last year. Since then, we have seen an increased registration, which is very positive.

Now the government continues to change the tonnage tax to further facilitate shipping. Sweden cannot have radically different rules compared to its closest neighboring countries, perhaps primarily Denmark. The new tonnage tax is intended to be introduced on July 20 this year and applies from the tax year 2027.

What changes are included in the adjusted tonnage tax, Madam Speaker? One major change is that it now covers large parts of special shipping, which were not included previously. Examples can include icebreaking, bunkering of fuel, towing, sea rescue, and vessels linked to the construction and maintenance of offshore facilities, for example, wind turbines.

Many of the vessels are important for the rest of the tonnage to function smoothly, but they are also very important for our preparedness. Many of the special vessels are smaller. Therefore, the limit for gross tonnage for these vessels is changed to at least 20 tons, in contrast to other vessels where the limit has previously been set to at least 100 tons.

Madam Speaker! From 1 February, so-called bareboat charter will apply. The regulations on the chartering of foreign ships and the chartering out of Swedish ships without crew are changing. Among other things, vessels in the bareboat register can be temporarily registered under the Swedish flag. The purpose is to improve the possibility for Swedish shipping companies to organize their operations in a rational way and finance new ships.

With the bill, the government increases the proportion of the shipping company's total gross tonnage that may be used for chartering from 20 to 50 percent, which further increases the flexibility for the shipping companies. Another change is that the requirement for international voyage is removed and replaced with a requirement that the vessel is used in traffic that is subject to international competition on the shipping market. These are requested changes from Swedish shipping that will make it even more attractive to register their vessels in Sweden.

With the bill, more generous conditions are also introduced for the over-depreciation fund. The conditions for moving forward the timing for when the allocation to the over-depreciation fund can be reintroduced to taxation for ships are changed. Now, the requirement is that the net draft of the owned qualified ships shall not have decreased, whereas it previously stated that it should have increased. Furthermore, an agreement on the delivery of a newly built ship shall, according to the proposal, be counted as an owned qualified ship.

With these changes to the tonnage tax, we facilitate Swedish shipping and increase the possibilities for flagging to the Swedish flag and thereby strengthen Swedish preparedness.

Madam Speaker! The stamp duty, the tonnage tax, bareboat charter, more border crossings at Swedish ports, a budget for additional icebreakers, a ban on open scrubbers that release exhaust into the sea, a newly signed agreement for the Gotland traffic where fuel prices have less impact on the price, lowered boat prices for residents on Gotland, adjusted eligibility requirements for the maritime training to increase demand, and improved infrastructure to our ports – not least two new tracks on the Göteborg–Alingsås stretch, the largest capacity shortage on the railway in all of Sweden, which the Social Democrats refused to include in the national infrastructure plan during the last parliamentary term – all of this was on the table for the Social Democratic government during the last parliamentary term without anything being done about it.

It is this government that has taken a long series of measures to facilitate Swedish shipping, and it is this government that has improved the conditions for Sweden's companies and preparedness and has reduced shipping's environmental impact.

With that said, I move for approval of the committee's proposal for a decision and rejection of the reservation.

(Applause)

The deliberation was hereby concluded.

(A decision was to be taken on 11 June.)

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