Create a RIT deduction

Installing a newly purchased computer, setting up a network or setting up a printer - services that are easy for some to handle themselves but challenging for others. IT support for individuals is currently an almost non-existent market, even though demand is high. Reducing taxes on household IT services would reduce digital exclusion, while creating new jobs for the younger, IT-savvy generation.

We are currently in the midst of a digital revolution. Digitization has brought us services that we could only dream of ten years ago. It is blurring geographical boundaries and inviting more dialogue and citizen engagement. But with the benefits of digitalization also comes an increasingly complex everyday IT environment.

According to a Demoskop survey conducted in December 2013 on behalf of Almega, 20 percent of Swedes state that they miss information online, cannot use online banking and that they cannot buy goods and tickets online. This is due to ignorance or computer problems. The problem is obvious and is getting worse as more of our societal functions are adapted for computers, the internet and smart phones. According to the same survey, one in three people say they would buy help with installation, support, service or training if the choice was available and the price was right. People over 65 both have more problems and want more support.

But, as usual, the high tax on labor favors consumption of goods over consumption of services. Very few individuals are willing to pay the price that domestic service companies are forced to charge in order not to make a loss. As with the RUT deduction, the opportunity for home IT services is huge.

There is a large potential market here where many new companies can be started and many can get jobs - both as self-employed and as employees, not least the younger generation who today have major problems entering the labor market at all.

While youth unemployment is high, it is young people in particular who possess the greatest IT skills. Based on the interest in buying this type of IT services, a tax reduction, or a so-called RIT deduction, would mean about 2,800 new full-time jobs and at the same time help to reduce youth unemployment. Demand is therefore high and the skills are available. At the same time, digital exclusion is an extremely important and urgent social issue that all politicians - regardless of color - should take very seriously. With a drawing deduction, we reduce the gaps in society and create new jobs. Can we really afford to wait?

Ulf Lindberg, Head of Industrial Policy, Almega

Ellinor Bjennbacke, Head of Industrial Policy, IT&Telecom Industries

(The debate article was published in LT 2014-09-03)