Sweden will probably shelve a plan to raise the tax on some income from carried interest on owners in private-equity funds, a government spokesman said.
“The purpose of the proposal was to get more tax income from the private-equity industry,” Daniel Valiollahi, a spokesman at the Finance Ministry, said by phone. “The opposition has pretty clearly announced they won’t let it go through so it will likely be put on hold.”
The government proposed last month to tax income as high as 5 million kronor ($750,000) as regular income while earnings above that would be taxed as capital gains at the rate of 30 percent.
The changes would affect 100 to 200 individuals and raise income tax intake by about 100 million kronor a year, the Finance Ministry said in the proposal. The Swedish private- equity industry is the second-biggest in Europe as a share of gross domestic product, the ministry said, with 180,000 people employed in 2010.
The proposal was too generous to private equity investors, Magdalena Andersson, spokeswoman on economic matters for the Social Democrats, the largest opposition party, told Swedish news agency TT.
To contact the reporter on this story: Adam Ewing in Stockholm at email@example.com
To contact the editor responsible for this story: Jonas Bergman at firstname.lastname@example.org