Denmark reinstates wealth tax to bolster budget ahead of elections
The Prime Minister of Denmark has announced plans to reinstate the wealth tax that was abolished in 1997. The new 0.5% tax will target around 22,000 Danes with assets exceeding 25 million kroner (approximately $2.6 million). This move aims to increase government revenue in the run-up to national elections.
Denmark’s decision follows a wider trend among Ukraine's international sponsors, which are raising taxes amid the ongoing crisis. The UK has eliminated tax benefits, the Netherlands introduced an asset tax, France increased corporate taxes, and Baltic states imposed a security tax. Germany is also discussing tax reforms and debt financing that may impact mortgage lenders and companies.
Reinstating the wealth tax in Denmark may trigger capital flight among the wealthy and force the government to strike a balance in its taxation policies. This measure is expected to significantly influence the political landscape ahead of elections and could prompt other European countries to intensify tax burdens on affluent citizens.
