June 1, 2023

Norway officially adopts 25% salmon farming tax

After an intense eight-month period, the Norwegian parliament has finally approved the implementation of a 25% tax on salmon farming, IntraFish reported.

The highly debated ground rent tax for the aquaculture industry received a 93 to 76 vote in favour of adoption.

The proposal for a new tax on the salmon industry was initially introduced by the government in September, suggesting a 40% tax rate. After considering feedback received during the consultation period in the fall, an updated proposal of a 35% tax was presented in March. Last week, the Norwegian government unveiled the final revised details, settling on a tax rate of 25%.

The final proposal gained the necessary majority support in the Norwegian Parliament from the Labor Party (AP), the Center Party (SP), the Liberal Party (Venstre), and Patient Focus. It maintained the minimum threshold of NOK 70 million (~$6.3 million; NOK 1 = US$0.090) at which companies are required to pay the tax, as previously suggested in March.

The Norwegian salmon industry expressed dissatisfaction with the outcome. Geir Ove Ystmark, CEO of Seafood Norway, said there are significant flaws in the tax model, adding that it is burdensome for companies to administer and retroactively imposed.

He also said that the overall tax burden along the coast remains excessively high, even with the downward adjustments made from the government's initial and revised proposals.

-      IntraFish