– May 31, 2023
The Norwegian Parliament has this afternoon voted in favor of the government’s controversial new “land rent” tax, which will tax much of the country’s salmon industry.
The decision on the new tax – also known as the “salmon tax” – came after a long and often fragmented five-hour debate in the Storting. The vote was approved by a vote of 93 to 76, a majority of 17.
Although the rate has been reduced from the original budget proposal of 40% to 35% and finally to 25%, it effectively doubles the tax burden on coastal salmon and trout farming businesses when combined with existing taxes. Land-based salmon farms and small coastal farms are exempt.
Billions of kroner were wiped off the value of the salmon company’s shares on the Oslo Stock Exchange immediately after the vote.
The result represents a victory for the Labor-Centre coalition, which has faced a barrage of criticism from industry, opposition parties and business commentators since the plan was first announced in the Budget national last September.
Yesterday it looked like the vote could be won by a majority of one after a late decision by the Liberals – and the single party Patient Focus – to back the government. Patient Focus was formed two years ago to promote the construction of a new hospital in the Finnmark town of Alta.
He won one of Finnmark’s five parliamentary seats using Norway’s proportional representation voting system.
The government was later pushed by the decision of the far-left party Red (“Rodt”) to support the 25% rate, even though it wanted a much larger tax take from salmon companies. Rodt has nine members sitting in the Storting.
Other measures voted today include higher revenue for coastal salmon communities, stronger environmental controls and an increase in the property tax assessment discount from 50% to 75% (which mainly affects privately owned salmon).
The salmon industry is expected to comment on the decision later, but despite the rate reduction it will not be satisfied.
