M Sweden rages against new travel deduction: “Madness”
M Sweden is furious that the government is moving forward with the proposal for a changed travel deduction. According to the organization, the bill means that fewer Swedish motorists will be able to make deductions and that the compensation will be reduced from SEK 6 to 5 per mile. “In a situation where the costs of driving a car increase so sharply, this proposal is insane,” says CEO Caroline Drabe.Published: 15 April 2022, 12:34The cost of drive car rails. Then the government chooses to proceed with its proposal for a new travel deduction, despite criticism from the Law Council. Madness, thinks the organization M Sweden, formerly Motormännen. “The proposal is insane. Motorists are fully aware that commodity prices and exchange rates are changing due to the war in Ukraine. But that does not mean you can afford to pay anything. People must be able to get to work “, says M Sweden’s CEO Caroline Drabe. The big changes in the proposal are about making the deduction distance-based instead of time-based and that the compensation will be vehicle-neutral. According to the proposal, commuters will be taxed equally, regardless of whether they take the car, public transport, bicycle or car. Another change in the proposal is that the compensation will be a tax reduction instead of a deduction. According to M Sweden, the ambition to move travel from car to public transport is an ambition that has no basis in reality. “The Swedish Transport Administration has stated that only a few percent of the car journeys made today can move over with the help of expanded public transport. The most important thing we can do for the environment is therefore to adjust the vehicle fleet so that it is fossil-free, ”says Caroline Drabe.Industry organizations Svensk Kollektivtrafik does not share M Sweden’s view. The organization believes that the existing travel deduction instead of contributing to a vibrant countryside has become a deduction for high-paid men on the outskirts of metropolitan regions who travel by car, despite the fact that good public transport is often available. In addition, they point out the extensive cheating with the travel deduction. The Swedish Tax Agency’s inspections have previously shown that approximately 44 percent of all travel deductions declared are incorrect. “Since the errors are so many, we draw the conclusion that it is about deliberate cheating. It is good that the government is now moving forward with the proposal that leads to a fairer travel deduction “, says CEO Johan Wadman. Nor does the Center Party, which considers itself to represent Swedes in rural areas, recognize itself in M Sweden’s criticism. The Government’s proposal is largely in line with the proposals previously made by the Center Party. “It is good that the government has submitted a proposal that provides higher compensation to those who are dependent on the car in the countryside. The important thing for us is that those who live in the countryside get a more tolerable situation. That is the aim of the proposal, not to subsidize car use in cities where there are alternatives. You have to be careful so that you do not reflexively just defend the car in this situation “, says the Center Party’s economic-political spokesman Martin Ådahl. Martin Ådahl sits on the finance committee and says that it is still unclear whether there is a majority in the Riksdag for the proposal. ”Many have expressed a desire to do something for the countryside and those who depend on the car there. I hope that it will be possible to gather a majority around this proposal. ”The new travel deduction is proposed to enter into force at the turn of the year.
The government’s new travel deduction
To whom: The new travel deduction applies to travel to and from work regardless of means of transport. Criteria: The travel deduction is based on distance, which benefits those who can make cheap trips, such as public transport or bicycles. Distance limits: The travel deduction applies to all business trips that are longer than 1,500 km and shorter than 80 km. For people in metropolitan regions with good access to local transport, the lower distance limit is 30 km. Replacement: In the current bill, the compensation is SEK 5 per mile. Next step: The government plans to submit a proposal in the budget bill this autumn where the compensation is increased to SEK 8 per mile and the upper distance limit to 120 km. Jon Röhne