July 4, 2023

 

Norway plans independent council to determine salmon prices for ground rent tax calculation

 

The Norwegian government has unveiled plans to establish an independent council responsible for determining the price of salmon when calculating the new ground rent tax, Fish Farmer reported.

 

The proposal has encountered opposition from Norway's salmon industry, which argues that tax rates should be based on the actual achieved prices rather than an externally determined figure.

 

Following months of intense negotiations, the Norwegian parliament voted in favour of a new tax rate of 25% in May, much to the discontent of the local salmon sector. Although the tax is retroactive to January of this year, companies will not begin paying it until 2024.

 

The government aims to introduce an independent council to assess the market value of traded farmed fish and has outlined its plan for consultation, scheduled to take place between now and early September. Trygve Slagsvold Vedum, Norway's Finance Minister, said that this scheme will simplify the assessment process for both aquaculture companies and tax authorities.

 

The proposed price council is expected to comprise at least five members and will consider variations in quality, fish size, and whether the salmon has been sold at current or fixed (contract) prices.

 

Seafood Norway, the representative body for salmon companies in the country, strongly opposes the government's plan. Geir Ove Ystmark, CEO of Seafood Norway, said that salmon is not a homogeneous product and asserts that taxation should be based on actual prices achieved.

 

Ystmark said that the body will carefully examine the government's proposal and will provide a comprehensive response during the summer consultation period.

 

He said salmon is fundamentally different from a barrel of oil or a kilowatt hour as it exhibits variations in size, quality, production areas, contract types, and end markets, so fish of the same size and quality can fetch different prices in different markets, highlighting the complexity of pricing in this industry.

 

He further emphasised the need to prevent companies from being taxed on income they have not generated and expressed concerns about the significant administrative resources that both small and large businesses would have to allocate to the process.

 

-      Fish Farmer