October 10, 2022

Norway's Finance Minister adamant that controversial tax will be imposed on country's aquaculture

Norway's Finance Minister, Trygve Slagsvold Vedum, remained defiant on October 6 as he prepared to deliver his first national budget which will impose extra costs worth billions of krone on the country's larger salmon and trout farmers.

With the backing of Labour Prime Minister Jonas Gahr Støre, Centre Party leader Vedum has thrown the normally stable industry into turmoil since he recently was forced to reveal his controversial salmon land tax plan.

The coalition government's new tax will apply to farms with production of over 5,000 tonnes a year, meaning the smaller salmon farmers would not be included.

Millions have been wiped off salmon shares – SalMar alone has lost half of its stock market value – while all the major companies have pulled or shelved ambitious investment plans.

The land tax, which is also being levied on Norway's wind power industry, is expected to raise up to kr3.8 billion (US$354.2 million) to help plug Norway's growing budget deficit. However, the salmon industry thinks it could be three times that figure.

There is even unrest within Vedum's own ranks, with several Centre Party coastal mayors urging him to rethink his plans.

However, the minister said he is not for turning. He added that he wants the industry to be profitable, pointing out that companies also get a 40% tax allowance for investments. He also intends to consult local communities about his plan.

But Vedum also told E24 that Mowi's largest shareholder John Fredriksen and SalMar founder Gustav Witzøe had made enormous fortunes from using Norway's fjords, so they should share more with the local communities.

- Fish Farmer