PROFITS IN SWEDEN

Auckland Star, Volume LXXVI, Issue 118, 21 May 1945, Page 3

PROFITS IN SWEDEN

TAXES WIPE OUT INCREASES The Increase in the profits of the Swedish Industrial companies during the war has been completely counter-balanced by the rise of taxes. This is shown by an investigation of 133 big industrial companies carried out by the Swedish Institute of Industrial Research. Owing to the falling monetary value, the industrial profits of the companies examined have shown a rising curve, although the rate of increase slowed down somewhat In 1943. The profits for the latter year, before the deduction for taxes, were about 32 per cent above the average level for the years 1938-30. These figures do not, however, give a true picture of the net earnings of the companies. After deduction of the taxes it is proved that the profits during the war years are only slightly above the average for the years 1937 to 1938. In 1937 the taxes absorbed about 25 per cent of the companies' profits, while for 1943 the corresponding figure exceeded 40 per cent. An Investigation made by the same institution into the dividends paid by 233 companies showed that the dividends distributed for 1943 amounted to hardly 5 per cent of their own capital, or exactly the samg as for 1942, but somewhat lower than for the years 1937 to 1939. The institute also mentions that the visible funds of the companies decreased during the first war years as a consequence of the rapid increase in taxation. In the last few years, however, the funds have again reached their prewar level.