”Double” tax for ABK's tenants when municipality withdraws profit

The Board's budget proposal for 2024 includes plans to expand the budget framework by taking 22 million crowns from KKF, Kristianstads Kommunföretag (Kristianstad's Municipal Companies).

It is the parent company of the various municipal undertakings, and was set up a few years ago for tax purposes. This way, you can transfer profits from the various municipal companies – or cover deficits. For example, the airport has often been financed in this way.

Two of the companies that are included in KKF are the municipal rental housing company AB Kristianstadsbyggen (ABK) and C4 Energi. Both companies often make substantial profits.

In the autumn, the municipality decided to transfer 3 million from ABK and 22 million from C4 Energi, in addition to allocating 16.9 million to the airport.

In total, KKF has currently accumulated 34 million in retained earnings, not including this year’s profits. M, KD and SD now want to take 22 million and put it towards next year’s budget from this money.

This is a topic which often attracts criticism. The tenants' association and residents have repeatedly questioned why tenants have to pay double tax. First, as municipal residents, then by paying rent that generates profits which also go to municipal operations.

The Left Party (Vänsterpartiet) in Kristianstad has also had similar sentiments.

– When it comes to withdrawing money from ABK, we say under no circumstances whatsoever. C4 Energi, on the other hand, has made extremely huge profits due to the price of electricity in Europe. In that case it is possible to withdraw money, says group leader Mikael Persson (V).