Refugee crisis delays Denmark's tax reform

The Danish government on Tuesday postponed its tax reform which was scheduled in the spring until the autumn 2016 due to the current refugee crisis.

Danish Prime Minister Lars Loekke Rasmussen announced the decision at a press meeting on Tuesday, saying that the government will first try to find a solution to the high costs of asylum seekers and refugees through negotiations with local authorities and the social partners.

"As I said in my New Year speech, the asylum crisis was this century's greatest crisis ... It challenges our cohesion and our economy," said the prime minister.

"The way we handle the crisis, will be crucial to how our society develops in the coming years," he added.

The Danish government also plans to present its new 2025 economic plan in the summer, and against this background the scheduled tax reform negotiations will first get under way this autumn.

The government's political framework states clearly that "all parties will be summoned to negotiations during spring 2016 with a view to lowering income tax."

According to the government, the move would help Danish companies retain their skilled employees who are considering taking jobs in countries where taxes are lower.

"A key ambition for us is a tax reform that reduces the tax on work. We must appreciate those who work and more people should support themselves," Rasmussen said, stressing that "the level of ambition is maintained and a proposal to lower taxes will be made later this year." Endit