Swedes lobby against advertising tax

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STOCKHOLM -- A working group appointed by the Swedish government in August 1996 has presented a report recommending the abolition of the present tax on advertisements. The committee was tasked with identifying ways of simplifying the current tax system as it applies to advertising in Sweden.

At present, daily newspapers pay a 4% surcharge on their ads. This percentage is based upon the full value of the advertisement. Other publications pay 11%. The situation is complicated by the fact that ads carried by new media such as CDs for example, are not subject to the tax at all. Moreover, it is not possible to place a tax on ads in publications sold in Sweden, which are printed in other European countries.

The review committee comprised a panel of six experts, including an official from the Department of Taxation. The finance ministry will now examine the substance of the committee's recommendation before presenting the proposal to cabinet in May.

Copyright April 1997, Crain Communications Inc.

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