The financial crisis has triggered a renewed interest in the taxation of the financial sector. In Sweden, it has led to the establishment of a government committee that is to review possible implications and tax revenues related to the VAT exemption. On this background, Svenska Bankföreningen (Swedish Bankers’ Association) has asked Copenhagen Economics to review who actually gains from the tax exemption and identify the consequences of this exemption.
In the paper, we address how the current VAT exempt system has negative distortional effects on the Swedish economy.
The study is commissioned by Svenska Bankforeningen