Letter to the editor. Abolish the root deduction that drives up construction costs

The government Billion is investing on an extended root deduction To stimulate the construction industry during the recession, a government that Last year the roof of the root deduction raised From SEK 50,000 to SEK 75,000, despite the OAG’s critical report (RIR 2023: 26) with, among other things, proposals to reduce this contribution instead.

The deduction for repair, rebuilding and extension was mainly introduced to deal with undeclared work in the industry. It certainly worked initially, although a lot of cheating has been found (material cost against a higher number of working hours).

We have now had root deductions for over 30 years and politicians and authorities are still surprised that construction costs have rushed up during these years. Raising the root deduction from 30 to 50 percent of the labor cost now leads to further construction costs rising. Not suddenly maybe, but the construction companies will slowly but surely be faced with demands for higher hourly allowance when you need people and subcontractors.

Homeowner or tenant -owner Who wants to replace a modern and well -functioning bathroom will be perceived as a client who can pay better, and it is clear: After all, someone else offers half the cost – namely everyone else who does not use the deduction.

The root deduction has done its thing. Point!

There are better ways to stimulate the construction industry and at the same time keep the construction costs in check. Unions and construction companies’ representatives probably have ideas.

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