According to recent reports, the Swedish government has announced that it has decided to withdraw its proposed financial activities tax, but that a new proposal will be drafted. The proposed tax, which was strongly opposed by the financial sector, was meant to offset the tax advantage the sector receives from its general exemption from value added tax (VAT) ({News-2016-11-10/P/5- previous coverage}). The government now hopes to draft and implement a new proposal before the September 2018 elections.