Skatt

Skatt is the term used in Swedish, Norwegian, and Danish to denote a compulsory charge imposed by a government on individuals, households, or corporations to fund public services and redistributive programs. The word derives from older Germanic languages and historically signified tribute or assessment on land and wealth.

Tax systems generally distinguish direct taxes, such as income and wealth taxes, from indirect taxes like value-added tax (VAT), sales taxes, and excises. Most countries use a mix of direct and indirect taxes, aiming to fund welfare programs, infrastructure, defense, and administration. In Nordic countries, taxation supports extensive welfare states, funded by a combination of national and local taxes, social security contributions, and VAT.

Administration and compliance: Tax authorities oversee assessment and collection. Many systems use self-assessment, withholding for wages, and periodic audits. Tax evasion and avoidance are ongoing policy concerns; digitalization and data-sharing have strengthened enforcement but raised privacy questions.

Impact and policy: Taxes influence incentives, distribution, and macroeconomic stability. Debates focus on rate progressivity, base broadening, credits, and the efficiency of public spending.

History: Taxation evolved from feudal levies to modern systems, with income taxes expanding in the 19th and 20th centuries and administrative modernization continuing into the 21st century.