Norwegian government scraps salmon farm resource rent tax

News
664

Seen as more moderate taxation as previously mulled.

In a press release, the Norwegian government writes that is proposing to introduce a production tax on salmon, trout and rainbow trout in the state budget for 2021. The proceeds from the levy will be distributed to the aquaculture and county municipalities. At the same time, the distribution of revenue from the sale of new permits will changes.

The tax is set at NOK 0.40 (EUR 0.03) per kg of fish produced. This will provide about EUR 44.7 million annually in increased revenues to the municipal sector as of 2022. No surplus-resource rent tax now proposed.

In March 2019, Norways Socialist Left Party had wanted a resource rent tax on salmon farms which was subsequently scrapped. The industry expected more extraordinary taxation, however.

“We are concerned that the municipalities that contribute to facilitating aquaculture receive a share of the aquaculture income. Now they get a more stable and predictable production fee, as well as a share of future auction revenue. This proposal balances the consideration of the industry and income to the aquaculture municipalities,” said Fisheries and Seafood Minister Odd Emil Ingebrigtsen (H).

The news will most likely be welcome to Lerøy and Austevoll Seafood owner Helge Møgster who compared the resource rent tax proposal to a Stalinist policy. “In his time, Stalin confiscated the values ​​of agriculture in the Soviet Union, and we know how it went,” the billionaire told DN last November.

“If the salmon tax is introduced, all investments in Norwegian salmon farming will stop immediately. Then you will look for other areas to invest in. Then you will put down Norwegian fish farming,” he said at the time.