STOCKHOLM: Sweden's centre-right coalition government said on Monday it would cut income taxes for a fifth time since 2006, aiming to boost a sluggish economy and overtake the opposition ahead of an election in 2014.
The package of tax cuts will total 15 billion Swedish crowns ($2.28 billion), comprising 12 billion in lower income taxes and 3 billion related to a raising of the threshold for incomes subject to central government as well as municipal taxation.
Sweden's four-party Alliance government has already cut income taxes four times since it took power while at the same time cutting welfare benefits.
The Nordic economy contracted unexpectedly in the second quarter, though the government has forecast growth of 1.2 percent this year.
Polls put the Alliance well behind the opposition ahead of an election, due at the latest in September 2014.
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