A tax on salmon: could the Norwegian project share the benefits of the seas?
Norway supplies more than half of the world's farmed salmon, or 1.5 million tonnes last year. After fossil fuels, it is the country's largest source of national income, and an extremely lucrative source: in 2022, operating profit margins for Norwegian salmon farmers were estimated at 45%.
Last September, the Norwegian government presented a proposal to increase taxes on industry. Aiming to share the profits of one of the country's main resources, the idea has been widely described as a "salmon tax", and set at 40% (on top of the 22% corporate tax).
Within hours, salmon company stock prices plummeted, with the seafood index on the Oslo Stock Exchange falling 25%. Last week, however, the government offered to go ahead regardless, while lowering the interim tax to 35%. coastal communities receive more of the "value created by fish farming". Host municipalities will receive more for “schools, elderly care and other social services,” he said.
Tax advocates y also see a way to reduce the state's dependence on the country's oil and pension funds, and to offset increased government spending on electricity subsidies amid the crisis European energy sector.
Industry representatives, on the other hand, say the new tax will undermine price competitiveness and economic growth.
"A ground rent of 35% will represent a tripling of the level of taxation for salmon companies," Kristin Langeland of the Norwegian Seafood Federation said of the proposal. .
“There have already been layoffs…and there will be less money for investment. The tax will hurt the Norwegian economy.
Langeland claimed that 40 billion crowns (£3.1 billion) of salmon-related investment had been postponed or canceled since last autumn after the government had first proposed the tax.
As the share prices of major Norwegian salmon companies, including Mowi, SalMar and Grieg Seafood, fell, observers have said that small producers could benefit. pageElements.ImageBlockElement" class=" dcr-5h0uf4">
Norway supplies more than half of the world's farmed salmon, or 1.5 million tonnes last year. After fossil fuels, it is the country's largest source of national income, and an extremely lucrative source: in 2022, operating profit margins for Norwegian salmon farmers were estimated at 45%.
Last September, the Norwegian government presented a proposal to increase taxes on industry. Aiming to share the profits of one of the country's main resources, the idea has been widely described as a "salmon tax", and set at 40% (on top of the 22% corporate tax).
Within hours, salmon company stock prices plummeted, with the seafood index on the Oslo Stock Exchange falling 25%. Last week, however, the government offered to go ahead regardless, while lowering the interim tax to 35%. coastal communities receive more of the "value created by fish farming". Host municipalities will receive more for “schools, elderly care and other social services,” he said.
Tax advocates y also see a way to reduce the state's dependence on the country's oil and pension funds, and to offset increased government spending on electricity subsidies amid the crisis European energy sector.
Industry representatives, on the other hand, say the new tax will undermine price competitiveness and economic growth.
"A ground rent of 35% will represent a tripling of the level of taxation for salmon companies," Kristin Langeland of the Norwegian Seafood Federation said of the proposal. .
“There have already been layoffs…and there will be less money for investment. The tax will hurt the Norwegian economy.
Langeland claimed that 40 billion crowns (£3.1 billion) of salmon-related investment had been postponed or canceled since last autumn after the government had first proposed the tax.
As the share prices of major Norwegian salmon companies, including Mowi, SalMar and Grieg Seafood, fell, observers have said that small producers could benefit. pageElements.ImageBlockElement" class=" dcr-5h0uf4">
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