Proposed bank tax divides parties over mortgage rates

Sweden’s proposed additional tax on banks has become a key issue in the election debate, with the main dispute centred on whether it would lead to lower or higher mortgage rates, SVT reports.

The Social Democrats, Green Party and Left Party have promised to introduce an extra bank tax. The Left Party proposes taxing all profits above a historical average.

The Social Democrats and Green Party also target what they call excess profits, but their proposed tax would be applied to banks’ net interest income, the profit they make from lending and borrowing. Mortgages account for a large share of this income.

The Tidö parties and the Centre Party oppose the proposal. SVT economic commentator Alexander Norén explains how the different models could affect people with home loans and their personal finances.