Social welfare clampdown on foreigners to fund Danish tax cuts

Social welfare clampdown on foreigners to fund Danish tax cuts
26 Feb 2018

Tougher social welfare laws for foreigners will help subsidise tax cuts in Denmark.

The new tax deal, agreed earlier this month, will also partially be funded by charging foreign nationals for Danish language lessons, according to The Local

The clamp-down on social welfare payments such as unemployment support to non-citizens is the result of a tax plan agreement between the coalition Government and parliamentary allies.

Tax cuts, worth around five billion kroner (US$834.9 million), are expected to leave Danish taxpayers between 1,850 to 3,150 kroner (US$308.91 to US$526.04) better off each year, according to Jyllands-Posten newspaper.

A more comprehensive tax plan, which would have delivered lower tax rates to higher earners was abandoned last month after negotiations failed, according to The Local.

Under the new agreement, claimants must have lived in Denmark for a specified length of time before being able to claim even the most basic support payments. The tax plan specifies that "qualification principles send the signal that the precondition for access to full social welfare is that the person has a strong connection to Danish society and has contributed to it over a number of years.”

Newcomers to Denmark including workers, students and European Union citizens will also have to pay for Danish lessons from 1 July this year. Language classes, which were free, will cost 2,000 kroner (US$334) per module, adding up to 12,000 kroner (US$2,000) for all six modules, which must be completed if many residence permit forms are to be accepted.

"Tuition fees and deposits will provide an incentive for only self-sufficient, motivated students to take classes," the tax agreement says.

Gill Oliver

Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.

 

Tougher social welfare laws for foreigners will help subsidise tax cuts in Denmark.

The new tax deal, agreed earlier this month, will also partially be funded by charging foreign nationals for Danish language lessons, according to The Local

The clamp-down on social welfare payments such as unemployment support to non-citizens is the result of a tax plan agreement between the coalition Government and parliamentary allies.

Tax cuts, worth around five billion kroner (US$834.9 million), are expected to leave Danish taxpayers between 1,850 to 3,150 kroner (US$308.91 to US$526.04) better off each year, according to Jyllands-Posten newspaper.

A more comprehensive tax plan, which would have delivered lower tax rates to higher earners was abandoned last month after negotiations failed, according to The Local.

Under the new agreement, claimants must have lived in Denmark for a specified length of time before being able to claim even the most basic support payments. The tax plan specifies that "qualification principles send the signal that the precondition for access to full social welfare is that the person has a strong connection to Danish society and has contributed to it over a number of years.”

Newcomers to Denmark including workers, students and European Union citizens will also have to pay for Danish lessons from 1 July this year. Language classes, which were free, will cost 2,000 kroner (US$334) per module, adding up to 12,000 kroner (US$2,000) for all six modules, which must be completed if many residence permit forms are to be accepted.

"Tuition fees and deposits will provide an incentive for only self-sufficient, motivated students to take classes," the tax agreement says.

Gill Oliver

Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.

 

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