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Danish Tax Cuts Scaled Back

Thursday, January 11, 2018

Danish Prime Minister Lars Lokke Rasmussen has been forced to scale back plans to cut tax in order to retain the support of a coalition partner.

As a result of the decision, announced on January 9, tax cuts will be largely restricted to those on low and middle incomes, with proposals to reduce the top rate of tax scrapped. Plans for the introduction of incentives for retirement saving will be retained, Rasmussen said.

The anti-immigration Danish People's Party had said it would only support tax cuts for those on high incomes if the Government introduces tougher controls on immigration, a demand that Rasmussen, of the center-right Liberal Party, refused.

Rasmussen had confirmed the Government's plans to proceed with the tax package only days earlier, in his New Year address to the nation.