The maximum marginal income tax rate on individuals is 59 percent. Effective corporate taxes are comparatively low at 28 percent, though social security contributions add about 40 percent to employers' gross wage bills. Trade in industrial products between Sweden, other EU countries, and EFTA countries is not subject to customs duty, nor are a significant proportion of Sweden's imports from developing countries. When Sweden joined the EU, its import duties were among the lowest in the world, averaging less than five percent ad valorem on finished goods and around three percent on semi-manufactures. Duties were raised slightly on average to meet the common EU tariff structure.
Most raw materials are imported duty free.
There is very little regulation of exports other than military exports and some dual use products that have potential military or non-proliferation application. Sweden began abolishing a complicated system of agricultural price regulation in 1991. Sweden's EU membership and consequent adherence to the EU's common agricultural policy has brought some re-regulation of agriculture. Sweden's Central Bank and National Debt Office have borrowed heavily in foreign currencies since the fall of 1992, increasing the central government's foreign debt five-fold to about a third of the public debt. Management of the increased debt level so far poses no problems to the country, but interest payments on the large national debt grew rapidly in the early 1990's.