The fact that Swedish companies have moved operations to other countries to achieve lower costs and a lower tax burden is well known. It happens every day but the question is how much longer, if the Center party get through with their proposal?
The Center party pointed out the entire 149 areas in Sweden which could be explained as tax-free zones, where it currently exist high unemployment and few or almost no business.
Often these zones are introduced in areas where exclusion is the greatest and in areas where there is no future or opportunities. Now, Sweden may introduce these zones, which could result in an economic success.
Tax is one of the key factors that businesses take into consideration when establishing on other markets. Tax-free zones are used worldwide to attract foreign companies to establish operations and create jobs.
The purpose of this proposal is primarily for domestic firms to establish themselves in vulnerable regions but in this case also to welcome international companies and organizations. The Center party may, for example, think of tax exemptions for businesses and reduced income taxes in these areas.
Tax-free zones have existed for a long period of time, including Latvia and Dubai to name a few. It is an effective way to get companies to locate in disadvantaged areas. Both Latvia and Dubai, with their tax-free zones, attracted global companies to establishments in their countries.
Tax-free zones produce results, especially in this economic situation where companies look to bring down the costs. Dubai, for example, became a very attractive market in a short period of time due to very favorable tax zones, and it could also happen in Sweden.
Cecilia Helland