The Danish People's Party now has an offer—or an ultimatum—for the government. If DF is even to consider delivering the votes the government needs to get its tax cuts through, the duty on petrol and diesel must be cut by at least two kroner.
That is what Anders Vistisen, finance spokesperson for the Danish People's Party, says ahead of today's negotiations at the Ministry of Taxation.
“If we can get a significant reduction in the price of petrol and diesel in Denmark, then we are ready to enter negotiations with the government about their tax reform. The duty must be brought down by several kroner.”
Is that at least two kroner?
“Yes, that is the minimum.”
Would you then be satisfied with that?
“No, then it depends on what the package looks like. But that is where we have set the level of ambition. People must be able to afford to fill up,” says Anders Vistisen.
The tax relief must apply for at least one year if DF is to help the government.
“The Danish People's Party's starting point is that it should be reduced permanently. But if we cannot get a permanent reduction through, we will fight for every single month and every single year.”
So the pain threshold is at least one year?
“Otherwise it is not interesting to us,” says Anders Vistisen.
According to the Danish People's Party, it will cost just over three billion kroner to cut petrol and diesel duty by two kroner.
Tax Minister Jakob Engel-Schmidt (Moderates) has not wanted to give an interview about the offer from the Danish People's Party.
The Red-Green Alliance and The Alternative will not join
The government has put a reform with three different tax cuts on the table. They are:
- A removal of the middle tax, which will give a tax cut to those earning over DKK 641,200 a year after labour-market contribution.
- An abolition of the top-top tax, which affects annual incomes over DKK 2,592,700 after labour-market contribution.
- A reduction of corporate tax from 22 to 19 percent.
These are three measures that the usual support parties, the Red-Green Alliance and The Alternative, will not agree to. Therefore the government must find another majority, and here the Danish People's Party's 16 seats could come into play.
“We in the Danish People's Party are not afraid of cutting taxes. We would have prioritised differently, but when Mette Frederiksen and Pia Olsen Dyhr have chosen that these are the people they want to benefit, then we are putting forward some other people, namely petrol and diesel car owners, whom we want to benefit.
“Then we will have to live with the Social Democrats prioritising top-tax cuts over what we might have prioritised if we held government power,” says Anders Vistisen.
Ready to cut the SU
One thing is tax cuts, another is financing. The government will, among other things, find money for tax cuts by cutting business support, saving on SU for students living at home, and making it harder for new graduates to receive unemployment benefits.
“We are actually ready to look at that if we can get petrol and diesel in as a central part of these negotiations,” says Anders Vistisen.
Aren't you selling yourselves a bit cheaply if you are willing to vote for these tax cuts for the richest Danes and savings on, among other things, the SU in return for getting a reduced petrol and diesel duty for only one year?
“Well, we are not saying that we are ready to buy it for only one year. But if we get our main economic demand through, which is emergency relief for petrol and diesel car owners, then the government also expects that it can get some of its policy through.”
But how can you agree to cut taxes for the richest Danes permanently in order to get petrol and diesel duties reduced for just a single year?
“Well, it is also not certain that we can, when we see the overall picture. But that is also why we say that we must have a significant concession on petrol and diesel, and then we will see how much of their policy they can get. But that is how all negotiations are,” says Anders Vistisen.
Four blue parties stand together
Before the negotiations, it was said that the government did not want to negotiate with the Danish People's Party at all. That made the four other centre-right parties—Denmark Democrats, Venstre, Liberal Alliance and the Conservatives—join forces and negotiate as a single unit.
The four parties have demanded that, in addition to the three original proposals, the government also cut taxes at the bottom, so that everyone in work benefits.
Four blue party leaders arrive and leave together when they are to negotiate with Tax Minister Jakob Engel-Schmidt. (Photo: © Linda Kastrup/Berlingske/Ritzau Scanpix)
Among the other blue parties, lower petrol and diesel duties are welcome. But it is not enough, according to Liberal Alliance and Denmark Democrats.
“We want it to be a direct tax cut that also benefits lower incomes,” says Hans Kristian Skibby, tax spokesperson for Denmark Democrats.
Liberal Alliance's tax spokesperson Mads Strange would also rather cut taxes.
“I share the intention that it should be cheaper to be a Dane. But if it were up to Liberal Alliance, I just think we should let Danes keep significantly more of their own money in the first place instead of going in and tinkering with all sorts of duties,” says Mads Strange.
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