Denmark proposed a new cap on interest tax deductions

Most taxpayers in Denmark will not pay higher taxes under a new proposal. The Danish government wants to limit interest tax deductions to 150,000 kroner yearly. Only 1.2 percent of taxpayers will pay more tax. That equals about 56,000 people across the country.

The rule affects people with very large bank or mortgage loans. Affected taxpayers will pay an extra 1,933 kroner per month on average. In nine municipalities near Copenhagen, over two percent of residents face higher taxes. In Gentofte, 8.1 percent of taxpayers will be affected.

The proposal is currently under negotiation in the Danish parliament. It could raise almost one billion kroner annually for public spending. Denmark remains one of the few EU countries with broad interest tax deductions. The Local reported these figures from the Economic Council of the Labour Movement.