Response to interpellation 2023/24:384 on excise duties in the budget bill for 2024
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerned excise tax changes in the budget bill for 2024. M argues that the government is conducting a responsible fiscal policy through careful trade-offs to combat inflation. M argues that reduced fuel taxes facilitate things for households 1, that the snus reduction is a tax shift to make cigarettes more expensive 1 and that the plastic bag tax is no longer needed 1. S argues that excise taxes should guide behaviors and contribute to the tax burden 2. S criticizes that the government is abolishing the plastic bag tax and lowering the snus tax despite economic difficulties 2. S believes that the resources should instead be used to combat gang crime and support municipalities.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Finansministern Elisabeth Svantesson (M)
Madam Speaker! Sofia Amloh has asked me how I intend to act so that the excise duty changes in the budget bill for 2024 do not lead to unwanted effects regarding consumption's impact on both health and the environment, and so that they do not have negative effects on tax collection or public costs in the long run.
The government conducts a responsible fiscal policy. As part of this, the government has presented a restrained budget to combat inflation and makes careful trade-offs before every proposal. This is also the case regarding excise duty changes. Before every proposal for a change, careful consideration is given to how an adjustment would affect the purpose of the tax and what public finance effects it would have.
Regarding the tax changes mentioned by the interpellor, their effects have been reported in different ways. For the tax on snus, the Ministry of Finance submitted a memorandum on 16 October 2023. The reduced tax on certain fuels is addressed in a bill decided on 19 October 2023. The abolition of the tax on plastic carrier bags is included as a proposal in the budget bill itself.
In these products, there are consequence analyses containing assessments of the effects of the tax changes, including public finance effects and the impact on health and the environment. The Government will also continue to report such assessments in any future proposals on tax changes.
Sofia Amloh (S)
Madam Speaker! Excise taxes are an important part of our tax system and affect both the economy and society as a whole. Excise taxes are used to guide people's behaviors. The purpose is to support people in making, for example, healthier and environmentally correct life choices, but excise taxes also, of course, contribute to the tax revenue and thus to the financing of the public sector. That people make healthier and environmentally sustainable life choices also reduces public expenditures in the long run.
The government has, in the budget communication, pointed to a number of excise tax changes that make the government's overall goals unclear. I submitted this interpellation to get clarity on the government's positions and plans regarding excise taxes, particularly the reduction of the tax on snus and the abolition of the plastic bag tax. In what way are people to be encouraged to make healthy and environmentally friendly lifestyle choices with this change?
In this year's budget, the government wants to spend over 500 million kronor to abolish the tax on plastic bags. We can certainly have a discussion about whether people have changed their behavior patterns regarding plastic bags since the tax was introduced, but I think it is quite clear that it is more obvious that people take something with them to carry their goods home in. People take bags from home when they go shopping. People are more conscious today than before. That is good, I think, and we should continue to be that.
We must remember that one of the motives for introducing the tax was that a new EU directive came into force where the member states were to pay a higher membership fee based on how many plastic bags were sold: the greater the sale of plastic bags, the greater the contribution to the EU.
Without overstating it, one can say that the abolition of the plastic bag tax could cost us over 1 billion in lost tax revenue. I wonder if this is one of the most important priorities to make right now.
I still don't understand if the price reduction of 3 kronor per snus tin will de facto happen. I see a rather large risk that consumers will not notice any direct price reduction, while the tobacco industry rather sees its chance to widen its profit margins. We see this elsewhere, among other things regarding how food prices are skyrocketing now. In that case, it is a rather difficult promise that a snus tin will become 3 kronor cheaper. Furthermore, these 3 kronor per tin cost the state 800 million. It is a rather expensive prioritization.
The Minister for Finance says that a tight budget is being presented and that these are bleak and hard times. I think it is strange that one makes just this prioritization.
Sweden and the world face great trials that require common solutions. These are trials that require us to join forces and that require solutions where we invest. Why were these specific priorities important for the government in relation to everything else in a difficult economic situation?
Finansministern Elisabeth Svantesson (M)
Madam Speaker! I answered exactly the same interpellation and question in the autumn, and I will not have any other answer to give today than what I had then.
We are making these tax changes for various reasons. The tax on petrol and diesel has been lowered to make things easier for households that are struggling. Together with the reduction of the reduction obligation, this makes a fairly significant difference for those who are dependent on their car.
The previous government worsened people's private finances with both high taxes and a harsh reduction obligation. We are now reversing this. The reduction means that a gasoline car that travels 1,000 miles will be 600 kronor cheaper in 2024 compared to last year. When it comes to diesel cars, it makes a very big difference. This is a real priority when households are struggling.
The tax on snus is lowered in a tax shift - we make it more expensive to buy cigarettes and cheaper to buy snus. We do this because smoking is a greater health risk than snus. It is something that you in the Social Democrats obviously agree with, as you also lower the tax on snus in your budget motion.
The plastic bag tax was, in principle, not loved by anyone. It is no longer needed. It creates complications, and we are far below the EU's consumption targets. Therefore, I think it is difficult to justify this tax, which fundamentally is just troublesome for quite a lot of people.
Overall, Madam Speaker, we naturally think that these are good reforms that fit into the government's overall policy with many other parts. Our budget is well-balanced. It fights inflation and supports households through tax cuts on work, pension, and what I have already mentioned. It simply makes things easier for households, companies, and welfare in a tough time.
Sofia Amloh (S)
Madam Speaker! The Minister for Finance and I had this debate earlier, but we may have differing views on how much of the debate we covered. Several of my arguments were not addressed by the Minister for Finance, and therefore I interpellated again. I believe it is important that we have this debate in the chamber.
We Social Democrats are letting the tax cut on snus remain in our budget, but unlike this government, we can afford to do so. This government cannot afford to make this type of tax cut.
Madam Speaker! The Minister has on countless occasions said that these are bitter economic times and that tough priorities need to be made. Not everyone can get everything, but I want to return to the point that excise taxes contribute to the tax collection and thus to the financing of the public sector.
It is not only the economy that is difficult for the state. We have many households that are on their knees financially. We see that food prices are still rising. We also see how our healthcare regions are running with gigantic deficits - it is so tough economically that they are driven to lay off staff.
We see high unemployment, and the number of layoffs is increasing. We also see that many municipalities across the country are struggling with the economy to make the most basic things, such as elderly care and school, work out.
With the budgets for 2023 and 2024, the state leaves the municipalities and regions behind. They do not receive anywhere near the money they need to carry out the most basic activities.
Madam Speaker! I have not even mentioned one of the biggest and most acute social problems: the gang crime that is tearing Sweden apart. Drug deals are driving children to murder each other. Safe residential areas are being plunged into terror.
Yes, we need to strengthen the justice system. Yes, we need to toughen more sentences. Yes, we need to give more tools to the police and the customs to stop the violence and the drugs. But we also need to stop the new recruitment to the gangs. We need to put a stop to all the children who are in the queue – children who have not yet committed any crimes should not do so either.
We need to join forces to put a stop to this violence. The practical, tangible work is done out in our municipalities. Our municipalities need to be provided with the resources and tools they need.
What I cannot understand is that the government, in this situation, is unable to consolidate its forces better and does not prioritize this better in the budget. It is 290 municipalities that have to share 80 million kronor so that new children are not recruited into crime and for the preventive work. Was 80 million kronor all you could give?
The government can afford to spend billions to remove the plastic bag tax and lower the tax on snus, in the best case by a few kronor per tin. Does the Minister still think these are the right priorities to make? You spend billions to lower the tax on snus and remove the tax on plastic bags, but you cannot even spend 100 million for municipalities to stop the new recruitment to gang crime. Are these the right priorities?
ANDRE VICE TALMANNEN
The Minister has announced that she will refrain from making further speeches in this interpellation debate.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.