The Danish government, along with the political majority, has agreed to introduce a new special tax on the financial sector, in what has been described as a “political own goal” by Insurance and Pension Denmark (I&P Denmark).

I&P Denmark argues that the tax will make it more expensive for Danes to insure themselves and save for retirement. It has called on the responsible parties to limit the special tax as much as possible, especially savers are already feeling the burden with inflation at its highest level in 40 years.

“We have the highest inflation in 40 years, so the last thing that is needed right now is a special tax, which risks raising the price further for such basic and important services as insurance and savings for old age. Already today, almost every tenth Dane fails to insure themselves, and it will probably be a crime if the agreement here leads to even more uninsured Danes,” I&P Denmark CEO, Kent Damsgaard, said.

He pointed out that the Minister of Taxation, in a reply to the Folketing, has confirmed that the tax will hit the lowest paid the hardest if the new tax is passed on to the price of insurance.

“Whether you ask the industry itself or economic experts, all experience shows that the special tax will make it more expensive for Danes,” he said.

Damsgaard is calling on the government and the Folketing to take responsibility for ensuring that the fight against VAT and tax fraud is stepped up as soon as possible – and that the income from the increased tax payments from companies that today cheat and evade tax is used for to reduce the bill from the special tax.]

“On behalf of the insurance and pension industry, which already contributes massively in the form of both payments to the Treasury and the companies' community involvement, I can only urge that politicians now stand by their previous promise to limit the special tax as much as possible by finding the money for Arne-pension by introducing digital cash registers in some of the industries where taxes and duties are cheated the most – to the detriment of both society and all law-abiding companies in the same industry,” Damsgaard concluded.

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