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By Bloomberg

The Swedish government’s plan to impose a special tax on banks will hurt confidence in the financial industry and poses a risk to jobs and growth, Stockholm’s Chamber of Commerce said.

“It would be unfortunate if a tax is designed in such a way that it hurts our competitiveness,” Andreas Hatzigeorgiou, chief economist at the chamber, said in a May 20 interview in Stockholm. “Companies in this industry are movable. While they want to be in Stockholm, since it’s an attractive place for financial companies, it’s not helpful with special taxes.”

The group is the latest critic of the government’s plan to start taxing banks’ revenue or payrolls as it seeks about 4 billion kronor ($479 million) annually to help meet a pledge of boosting welfare spending. Nordea Bank AB Chairman Bjoern Wahlroos has said it may prompt banks to shift parts of their business to avoid the levy, while Chief Executive Officer Christian Clausen has warned the tax will hurt the economy.

Prime Minister Stefan Loefven said the Nordea chairman should “wait” before “packing his boxes” until his administration has worked out the details.

A survey by the chamber shows confidence in Sweden’s financial industry rose in the first quarter from the fourth, but remains about 13 points below its late 2013 level. More than a quarter of the banks surveyed said they faced a lack of demand, up from just under a tenth in the previous period.

“The companies in this industry are worried,” said Hatzigeorgiou. “This is an indication of insecurity as the industry feels uncertain about coming regulation.”

Sweden’s financial industry accounts for about 5.5 percent of gross domestic product with 66 percent of its output coming from Stockholm, according to the chamber. The industry employs some 100,000 people in Sweden, of which about half are based in Stockholm.

“Since the financial industry is a job-engine, it’s probably not good for the economy of Stockholm or for the economy of Sweden,” Hatzigeorgiou said.