Frontpage News 2016 Ambitious plan foc...

Ambitious plan focused on growth

30 August 2016

Today, the government published its 2025 plan for Denmark. The Danish Bankers Association supports creating increased growth in Denmark and calls the government’s plan ambitious.
 
The 2025 plan will create an economic scope of DKK 65 billion and consists of seven main points.
 
“We are delighted to see an economic plan, which has clear goals for in-creasing growth in Denmark,” says the CEO of the Danish Bankers Associa-tion, Ulrik Nødgaard.
 
Pensions
The 2025 plan also contains new pension deductions for Danes, who are outside of the highest tax bracket. With an extra deduction, more Danes, who do not pay the top tax rate, will be able to contribute more to their pension. At the Danish Bankers Association we acknowledge the proposal, but also point to the fact that the government should also look into the op-tion of raising the cap on annual contributions to annuity pension schemes to DKK 100,000.
 
“Pension contributions began to stagnate, when the tax ceiling for annuity pension schemes was lowered in 2010 and then again in 2012. It is prob-lematic in a time with low interest rates, where we are living longer and the welfare state’s resources are limited. Therefore, we suggest raising the ceil-ing to DKK 100,000 again,” Ulrik Nødgaard states.
 
Investment management
The Danish Bankers Association has previously sought an adjustment of taxation rules, which would be useful for exporting and importing invest-ment products for the benefit of Danes and foreign investors. Everything seems to indicate that the 2025 plan will address the challenges and that money will be set aside to solve these challenges.
 
“Denmark already has a solid position within investment management with a strong professional environment and products that are in demand. Changing the rules would strengthen this position and Danish investment managers would be in a better position to compete with foreign countries.”
“This will lead to increased employment in the sector and contribute to growth in Denmark, as well as strengthening Copenhagen as a nodal point for investment management,” Ulrik Nødgaard says.
 
Venture capital and tax
The Danish Bankers Association also supports the government’s intention to give small newly established companies better access to venture capital by introducing an investor deduction for investments in small companies.
 
“Many smaller companies find it difficult to create the necessary venture capital. An investor deduction can hopefully help lots of new companies onto the right track. It is important, and essential, that smaller companies have a certain amount of equity and other forms of liable capital, so that they can secure a bank loan and grow,” Ulrik Nødgaard emphasises.
 
“Introducing lower tax on shares and income from capital will also create growth. The government is also proposing this and we support the idea,” Ulrik Nødgaard concludes.
 
For further information:
Contact the Head of Media Relations at the Danish Bankers Association by phone: +45 3016 1009 or by email: slh@finansraadet.dk
 
Follow the Danish Bankers Association on Twitter: https://twitter.com/finansraadet
 
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