Swedish govt scraps plans to raise taxes

Stockholm

SWEDEN'S minority government has withdrawn two contested tax increase proposals to avert potential no-confidence motions and get a budget passed before next year's election.

The Social Democratic-led government on Saturday said it won't go ahead with a plan to make more people pay state income tax and also backed off raising taxes on small businesses through changes to the so-called 3:12 rules. These measures would have raised about four billion kronor (S$680.8 million) annually.