September 16, 2024

Norway's opposition unveils plans to cut country's aquaculture resource rent tax

The main opposition party of Norway's current government has outlined plans to significantly reduce the country's controversial aquaculture resource rent tax, which has caused significant disruption for many local salmon farmers.

In a draft manifesto of the Conservative Party (Høyre) released on September 8, the party called for a reduction of the resource tax, which imposed a 25% tax on profits made from the seawater growth phase of salmonid production effective from January 1, 2023. It also pledged to improve conditions for the aquaculture industry.

"The aquaculture industry can be one of the really big growth industries in the Norwegian economy in the future, but we must have a tax system that unleashes the growth and creative power that lies along the entire coast," said Høyre Deputy Leader Henrik Asheim in a statement.

Høyre is considering a reduction of the tax to 15%, according to Asheim.

"There will be a lower tax burden," he said.

The Conservative Party has previously pledged to eliminate the tax if it returns to power but is now proposing a reduction instead, in response to feedback from the industry and its desire for predictability, E24 reported. But, the party won local elections in 2023 and is favored to beat the ruling Labor Party in the national election planned for September 8, 2025. If the party wins enough seats in the Storting – Norway's parliament – it may reconsider scrapping the tax.

Following the resource tax's introduction, a number of the country's largest salmon companies responded with cuts to planned investments. Share prices of most publicly traded Norwegian salmon firms increased in the wake of Høyre's announcement.

- SeafoodSource