Swedish businesses and commuters warn of rising costs and tax changes

Various Swedish industry organizations and advocacy groups are warning of significant financial impacts due to proposed or implemented policy changes.

Installatörsföretagen and Transportföretagen have joined the “Karensupproret” to oppose the abolition of the sickness allowance deduction (karensavdraget). According to calculations from Svenskt Näringsliv, removing this deduction could increase sick pay costs for the construction sector by 1.3 to 1.7 billion SEK annually, while the transport sector could face costs of up to 1.2 billion SEK per year. Industry leaders warn these costs may reduce hiring capacity and investment.

M Sverige reports that car commuters face worsening conditions despite a previous increase in mileage reimbursement. For the 2026 income year, the threshold for travel deductions has increased from 11,000 SEK to 15,000 SEK, which the organization claims could result in a tax increase of up to 1,200 SEK per year for some drivers, particularly affecting those in rural areas.

Additionally, a government inquiry suggests a phase-out of tax benefits for electric vehicles. The proposed reduction in the deductible new car price for benefit cars would decrease from the current level of up to 350,000 SEK to 200,000 SEK in 2028, eventually reaching zero by 2031. Mobility Sweden has expressed opposition, stating this could slow the transition to electric mobility.