STOCKHOLM, June 19 Sweden's centre-left minority
government is proposing a corporate tax cut to 20 percent from
22 percent, Finance Minister Magdalena Andersson and Financial
Markets Minister Per Bolund said on Monday in an opinion piece.
They said the finance ministry would on Tuesday put out a
memorandum, which also includes a proposal to limit interest
deductions for companies, for consultation with interested
"With the proposals we want to strengthen competitiveness
and create a more dynamic business climate," they said on
business daily Dagens Industri's website.
The proposals aim at making it less beneficial to finance a
business with loans, and more beneficial to finance it with
"The latest financial crisis as well as the Swedish
financial crisis in the 1990's have shown that too high a debt
level in the corporate sector can have substantial negative
consequences," they said.
"Beneficial interest deduction regulation gives companies
incentives to finance their businesses with loans."
The proposed corporate tax cut would be fully financed, they
said, adding they propose the changes would be implemented on
July 1, 2018.
(Reporting by Anna Ringstrom; Editing by Toby Chopra)