Sweden to introduce airline tax in 2018

FILE PHOTO - Per Bolund speaks during the Asian Financial Forum in Hong Kong, China January 18, 2016. REUTERS/Bobby Yip

STOCKHOLM (Reuters) - Sweden will put forward plans for a tax on air travel before summer and will use the revenue to lower taxes for small companies, Financial Markets Minister Per Bolund said on Wednesday.

The government said it expected to raise around 1.7 billion crowns a year starting next year from the air travel tax, which would be used to cut payroll taxes on small businesses.

“We plan to send a proposal for a tax on airline travel ... before summer,” Bolund said in a statement.

“In this way, we are creating a shift toward green taxes where we raise taxes on emissions and cut taxes on labour.”

Reporting by Simon Johnson; Editing by Daniel Dickson