Sweden’s new centre right government has scrapped the country’s wealth tax, removing one of the most powerful symbols of seven decades of almost uninterrupted left wing rule.

Fredrik Reinfeldt, Sweden’s youthful 42-year-old prime minister, who won elections last September, said a proposal to eradicate the 1.5 per cent tax on personal wealth over SKr1.5m ($200,000) would be included in next month’s budget.