NFU News

NFU calls on Danish government to reconsider plans on payroll tax

The Danish Government currently holding the EU presidency proposes to increase the payroll tax in the Danish finance sector to a total of 12,3 % as a part of a wider tax reform published today.
A payroll tax is effectively a tax on labour, and has no regulatory effect apart from being an incentive to reduce the number of employees and distort wage development with detrimental effects on employment and growth.

The finance sector in Europe needs to live up to its responsibility and to pay its part to society and fiscal consolidation, but finance employees should never pay with their jobs to achieve this.
A payroll tax could also have unfortunate effects on financial consumers, since fewer finance employees inevitably would lead to less time for customer care and quality advice giving.

It is quite surprising and deeply regrettable that the Danish government – a centrum-left coalition – explicitly wants to tax labour at a time when Europe needs focus on employment and growth. Especially when the same tax revenue could be raised much smarter and more efficiently with other tax instruments currently on the EU agenda – such as the financial transaction tax or balance sheet taxation.
The Danish government is sending the wrong signals to finance workers, finance consumers and the entire EU growth agenda with its current proposal on payroll tax.

NFU therefore calls on the Danish government to reconsider its plans to tax labour in the Danish finance sector by replacing the payroll tax with smarter and more efficient tax models.

About NFU

Nordic Financial Unions (NFU) is the voice of the employees in the Nordic financial sectors. We are an organisation for co-operation between trade unions in the banking, finance and insurance sectors of the Nordic countries. Through our eight affiliated unions in Denmark, Sweden, Norway, Finland and Iceland we represent 160 000 members – a vast majority of the employees in the Nordic financial sectors.

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