Danish municipalities announce new tax rates

Twenty-two are planning to reduce taxes, while six are going to raise them

Danish municipalities have announced new budget plans and tax rates for 2016, reports DR. The changes will affect income tax, property tax and corporate tax rates in 28 municipalities.

Of the 98 municipalities in Denmark, no tax rate changes are planned in 70 of them, while 22 are actually planning to lower their rates, saving residents and businesses a combined total of 147 million kroner a year.

However, six municipalities – Albertslund, Lolland, Guldborgsund, Esbjerg, Struer and Norddjurs – are increasing their rates, which will result in an overall cost of 154 million kroner.

All combined, the municipalities will generate 7 million kroner more in taxes next year.

Struggle to find a compromise
According to the interior minister, Karen Ellemann, the local authorities “have made great efforts to co-ordinate their taxes” so the overall situation remains stable.

“It was a long and great struggle to get to the finishing line this year,” Martin Damm, the chairman of the interest group Local Government Denmark, told DR.

“If Parliament now passes the reprioritisation package for 2017-2019, it will affect citizens’ welfare, for example, when it comes to daycare centres, schools and institutions for the elderly.”





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