Tax rebellion grows – from within government parties!
MORE pressure is being piled on Norway’s Labour – Centre Party coalition government to shelve its controversial ground rent tax – and this time it is coming from within those two parties.
The call was made by the Labour-Centre party dominated county council in Trondelag, one of Norway’s main salmon farming areas.
They said they are unable to support their own government on the tax in the way it is being presented and are demanding it be postponed until parliament comes up with a more acceptable formula.
The two parties have been joined by the Liberals and Christian Democrats on the council.
The county council statement, which has been sent to the national parliament (The Storting), says: “The ground rent tax, which will be introduced with effect from 1 January 2023, should be postponed until the final arrangement has been adopted by the Storting.
Much of Trøndelag’s economy is dependent on fish farming and the fear is that the tax will lead to more than the 1,000 job losses already announced nationwide. The council is also worried that aquaculture investment plans will dry up.
At the moment the government is standing firm on its plan, although it has offered some amendments on how the tax will be calculated..
Finance Minister Trygve Vedum claimed it was mainly the large companies which are opposing the tax.
He had spoken to smaller salmon businesses who are not expected to be affected and they were more positive about the proposal.
He also pointed out that companies which invest will receive significant deductions in their overall tax bill.