Permanent tax exemption for the benefit of charging at the workplace and expanded right to deductions for fuel expenses
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
1 S wants to see support for electric car leasing for families with ordinary incomes and increased domestic production of biofuels 1. S believes that the government is neglecting the climate work and that the transition is proceeding too slowly 1. 2 V believes that the tax exemption should be extended to also include charging in connection with the residence 2. 3 SD believes that the proposal is forward-looking, simplifies the regulatory framework, and reduces Sweden's dependence on oil from dictatorships 3. 4 M wants the transition to be reasonable for ordinary households and advocates for policy instruments that make it profitable to choose correctly 4. M believes that nuclear power is a stable energy source that enables electrification 4.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Ida Ekeroth Clausson (S)
Madam Speaker! Today we are debating SkU23 Permanent tax exemption for the benefit of charging at the workplace and expanded right to deduction for fuel expenses.
In the bill, it is proposed that the temporary tax exemption for the benefit of charging at the workplace shall apply permanently. The proposal aims, among other things, to continue to facilitate the transition to a fossil-free vehicle fleet and favor business trips with rechargeable vehicles over other less sustainable alternatives.
The proposition also proposes an expanded deduction right for expenses for fuel for business trips with a company car in certain cases. The proposal means that taxable persons who have a plug-in hybrid as a company car have the right to a deduction for expenses for fuel associated with business trips, even if the car has been charged with electricity provided by the employer in connection with the workplace. The proposal aims to simplify the regulatory framework and improve the situation for persons who have a plug-in hybrid as a company car and utilize the electric drive as much as possible during business trips.
All of this is positive, but more is needed. The transition to a more environmentally friendly vehicle alternative has gone far too slowly in Sweden. This is due to several things, but most clearly, it is because we have a government that has aligned itself with the far right and ignores climate work.
We Social Democrats want to see support for electric car leasing that makes it possible for families with ordinary incomes to lower their fuel costs through electrification. We know that when the EU's new emissions system ETS 2 is introduced on January 1, 2028, prices for fossil fuels are expected to increase sharply. Now that the government has increased Sweden's dependence on fossil fuels from oil states, it makes Sweden worse equipped for the world market's price fluctuations, which we can see with the crisis and the war in Iran. We also risk large fines because, for the first time in 20 years, we are now increasing emissions.
We Social Democrats want to accelerate electrification and increase Swedish biofuel production but not postpone emission reductions that still need to be made, which will only make it more expensive in the long run. Volvo Cars, one of Sweden's largest employers, has invested heavily in keeping up with electrification. Now, they have been negatively affected by the fact that climate policy in Sweden and the EU has slowed down.
The CEO of Volvo Cars, Håkan Samuelsson, says: If one believes that the future is electric, I do not think it is particularly smart to try to brake that transition.
And a few weeks ago, the CEO of AB Volvo, Martin Lundstedt, warned that development jobs could be moved from Europe to China if the sales of electric trucks do not increase faster in Europe. That too is a company that is one of Sweden's largest employers.
Martin Lundstedt said: I do not want to stand here and threaten, because that is not the intention, but I would rather say that we still have an opportunity to be in the race. Let us take it now and convene the different actors, politics, the business community and the customer base and create the right conditions.
In Sweden, we have these two enormously large automotive industries to be proud of. They have, of course, suffered from the government abolishing steering measures and not replacing them with new ones. Their domestic market is, of course, very tough. If we compare with, for example, China, we see that just over 1 percent of all heavy vehicles sold in Sweden are electric, while the corresponding figure in China is 35 percent. Then it is not strange that the industry is worried about what is happening.
What is the government's plan to support this incredibly important industry, for the jobs, the growth, and the climate in Sweden? There are no proposals.
Madam Speaker! If the government does not want to achieve a transition for the sake of the climate, perhaps it should do so to safeguard Swedish jobs and an industry we can be proud of. I myself come from Mariestad, a municipality that, like many other municipalities, faces a major transition and great opportunities through the green transition. But these opportunities are not self-evident; they require political courage and long-term rules of the game. What happens if the investments do not materialize? What happens if the jobs move? These are questions that we cannot afford to ignore.
If we do not drive the transition for the sake of the climate, let us then do it for the jobs, for the industry, and for Sweden's future! The future is electric. The question is not whether we should transition, but whether we dare to lead the transition or choose to lag behind. We Social Democrats are clear about what we want Sweden to do.
Kajsa Fredholm (V)
Madam Speaker! In light of the fact that we in Sweden, due to the government's policy, will find it difficult to achieve the climate goals we have set for 2030, it would be good to also have a flat rate that covers charging of cars in connection with the residence. We in Vänsterpartiet believe, in line with several referral bodies, that the tax exemption should be expanded so that the residence is included. The introduction of a flat rate would facilitate for employers to offer employees electric cars and achieve cost neutrality between different choices of charging location.
Erik Hellsborn (SD)
Madam Speaker! Today we will therefore talk about SkU23 Permanent tax exemption for the benefit of charging at the workplace and expanded right to deduction for fuel expenses.
The Sweden Democrats support the submitted proposal to approve the current government bill. It is a proposal that is forward-looking, morally correct, and practically feasible. It will drive the green transition of our vehicle fleet. It simplifies the regulatory framework for Swedish employers and employees, and it makes us less dependent on oil from dictatorships and rogue states.
By allowing employees to charge their electric cars or plug-in hybrids tax-free at the workplace, sustainable business trips are favored over less environmentally friendly alternatives. This reduces emissions, lowers costs for both employees and companies, and creates strong incentives to choose rechargeable vehicles. From the government side, we clearly see that this contributes to reaching our climate goals while also being good for Swedish competitiveness and Swedish jobs.
Furthermore, an expanded right to deductions for fuel expenses on business trips with a company car is proposed. Particularly important is the rule for plug-in hybrids. The person who has a plug-in hybrid as a company car shall be able to deduct fuel expenses for business trips even if the car has been charged with electricity provided by the employer at the workplace. This significantly simplifies the regulatory framework. It removes the unnecessary penalty tax for those who choose electric drive, which gives drivers incentives to actually use electricity instead of gasoline or diesel when they are out driving for work.
Madam Speaker! Already in the budget bill for 2026, the government announced that it would return with these proposals. The bill is based on a solid investigation and on the Swedish Tax Agency's request for simplified taxation of car benefits and fuel benefits. The proposal aims to continue facilitating the transition to a fossil-free vehicle fleet and to favor business trips with rechargeable vehicles. At the same time, it creates a simpler and more equitable regulatory framework for those who use a company car for work.
But in addition to economic and climate policy aspects, there is also a democratic and security policy aspect. Much of the world's oil comes from dictatorships and rogue states. Oil revenues have since 2022 financed Russia's unjust war of aggression against Ukraine. In Iran, we see how the mullahs' dictatorship exploits its military power to stop oil deliveries and drive up global prices.
No good democrat wants to be forced to feed the war chests of dictatorships or risk being held hostage under the threat of missing oil deliveries from rogue states that want to get away with all kinds of evil deeds. Reducing our oil dependency in favor of electrification is therefore desirable, even if it obviously must be carried out within realistic timeframes and without naive rosy calculations.
Madam Speaker! In summary, this is about continuing on the path towards a more sustainable and modern tax policy for vehicle benefits. We are reinforcing a tax exemption that works well in practice. We are expanding the right to deduction so that it benefits those who choose electric power even on business trips. We are creating incentives that promote the climate transition and that facilitate things for Swedish companies and employees, as well as making Sweden less dependent on dictatorships and rogue states. It is a balanced, forward-looking, and practical policy.
Ida Ekeroth Clausson (S)
Madam Speaker! Member Hellsborn mentioned several times in his speech that the government is doing a lot to reduce the use of oil from so-called rogue states. I would like to ask: What more is the government doing for this, beyond just this proposal?
Erik Hellsborn (SD)
Madam Speaker! I do not know exactly what the member is fishing for, but this is, as stated, a measure that is good, not only for the environment but also for democracy and global human rights. We shall not fertilize the war chests of these rogue states. We shall not be held hostage by them under threat of missing oil deliveries.
I think that the government and the Sweden Democrats hold a very clear line in their foreign policy on these issues, but that discussion perhaps should be held in the Committee on Foreign Affairs rather than in the Committee on Taxation.
Ida Ekeroth Clausson (S)
Madam Speaker! It became quite clear that the government does not have much policy to reduce the use of oil. I do not quite believe that this falls under the Committee on Foreign Affairs.
We know that Sweden, due to the policy the government has pursued, remains very dependent on oil and has been affected by the fuel prices as they look right now, given that it has not been ensured that we have pushed forward the transition in Sweden. We see that the use of electric cars has not increased to the level that we have wanted. We Social Democrats want that we should protect the population against future price shocks through a stable domestic production of fuels.
I would like to take the opportunity to ask the member a question, in addition to the one about what is being done now so that we do not have to use the oil of dictatorship states, which we have unfortunately been forced to do to a very large extent in Sweden: How does the government intend to handle the risks of, for example, the rationing of fuels that we are facing, the rising food prices, and the increased geopolitical tensions?
Erik Hellsborn (SD)
Madam Speaker! I would say that the best measures are those that can actually be implemented and are also implemented. Through this bill, we take an important step in the right direction. We make ourselves less dependent in the long run.
Then this is obviously not a silver bullet. It is not some magic pill that solves all problems. I believe we agree on the way forward: We shall become less dependent on oil, and we shall move towards electrification. But we must stay within realistic frameworks.
We can say that we will be free from this dependency tomorrow, but we will not be. We must implement realistic reforms that are feasible in order to, in the long run, make ourselves less dependent.
Crister Carlsson (M)
Madam Speaker! We shall now debate SkU23, namely permanent tax exemption for the benefit of charging at the workplace and an expanded right to deductions for fuel expenses. I move for approval of the committee's proposal.
We must have a responsible climate policy that works in reality. About one-third of Sweden's emissions come from domestic transport. It is a sector that must be transitioned, but it must happen in a way that actually works for people in everyday life.
For the Moderaterna, the way forward is clear. Electrification is crucial. But it is not enough to tell people to change cars – the transition must be possible and reasonable for ordinary households. We must not, through high taxes and increased reduction blending, set fuel prices at perhaps 35–40 kronor. It is not sustainable for someone coming from, for example, Dalarna, like I do, where many commute several miles a day to get to work.
That is why we focus on instruments that make it more profitable to choose correctly – not more expensive to make a mistake. The Government now proposes that the temporary tax exemption for charging electric cars at the workplace becomes permanent from July 1, 2026. This makes it easier for both employers and employees to transition.
The second proposal corrects a concrete injustice. Someone who has a plug-in hybrid as a company car and charges it for free at work before a business trip loses today their entire right to deductions for fuel, even though the trip is a business trip. The regulations also penalize the person who makes the environmentally friendly choice. We are now correcting this.
Madam Speaker! These are targeted reforms that lower thresholds and change behaviors where it matters. Earlier this year, a new electric car premium was also introduced, aimed at households with lower incomes, especially in areas where the car is a necessity. By having the support paid out over time, it becomes possible for more people to take the step to an electric car.
Critics argue that the pace is too slow. But to drive up the fuel price significantly, perhaps without offering realistic alternatives, risks hitting households and companies hard without providing the effect that is needed. Climate policy must work in reality, not just in theory.
Sweden accounts for a small part of the world's emissions, but that does not mean our work lacks significance, on the contrary. By showing that transition can be combined with growth and a stable economy, we can contribute with solutions that more countries can follow. At the EU level, Sweden has been involved in pushing through Fit for 55, one of the world's most extensive climate packages. This implies sharp requirements to reduce emissions by 55 percent by 2030. Sweden also has an even more ambitious goal, namely climate neutrality by 2045.
But climate policy is not just about goals, but about conditions. The electrification of the transport sector and industry requires large amounts of fossil-free electricity. Therefore, the government's policy is now based on significantly increasing electricity production.
All fossil-free power sources are needed: hydropower, wind power, solar energy, and nuclear power. Nuclear power plays an important role as a stable and predictable energy source. It enables electrification on a large scale. Unlike wind and solar power, which vary depending on the weather, nuclear power delivers electricity around the clock, all year round. Research shows that stable power systems without fossil fuels require a balanced mix. Here, nuclear power has a unique role.
At the same time, it is important to be honest: New nuclear power involves large investments and long lead times. That is exactly why long-term rules of the game are needed that make it possible to make decisions today to secure the electricity supply tomorrow.
Relying solely on wind power is not sustainable, however. Negative aspects of wind power include the impact on the landscape, noise, shadow flicker, and so on. Therefore, great consideration must be given to those who live near the wind power.
The government is now working to shorten permit processes, expand electricity production and secure the supply of skills. That is how we remove the obstacles that today hinder the transition.
Climate policy must deliver results, not just ambitions. It must reduce emissions and also work in people's lives. That is how we truly transition Sweden.
The deliberation was hereby concluded.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.