Proposed risk tax in Sweden

Question for written answer  E-000767/2021
to the Commission
Rule 138
Jessica Polfjärd (PPE)

In September 2020, the Swedish Government announced its intention to introduce a so-called risk tax to be levied on Swedish credit institutions and on foreign credit institutions with a permanent establishment in Sweden. The tax base would be the institution’s liabilities related to business activities in Sweden and the tax rate would be 0.06 % for 2022 and 0.07 % from 2023. A threshold, nominally set at SEK 150 billion, would determine whether a credit institution is subject to the tax. If a credit institution’s liabilities exceed this threshold, the tax would be payable on all liabilities related to business activities in Sweden.

The justification for the proposed tax is that the institutions subject to the tax pose the greatest risk in the event of a financial crisis. However, the tax would only take the size of the liabilities into account, not the actual risk in the financial institution. The proposed design exempts Swedish credit institutions with liabilities not exceeding the threshold and institutions registering liabilities on a foreign balance sheet from the tax.

Given the risks of distorting competition on the internal market, does the Commission consider the proposed tax to be consistent with EU State aid rules?