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The crisis in the crown has led the Conservative Party program committee to unanimously support the reduction of excise taxes on alcohol and sugar. The goal is to get rid of cross-border trade.
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– We have been very restrictive in this in the Conservative Party, but I think that the situation now is very different, and if the jobs are compared with other issues, then the work weighs more, says the Minister of District and Digitization Linda Helleland, who also He heads the Conservative Party’s program committee.
The program committee, which is currently crafting party policy for the next legislature, wants to reduce excise duties on products that each year attract hundreds of thousands of Norwegians across the border into Sweden.
Previously, it has been the FRP that has yelled the loudest when it comes to adjusting excise duties, giving the state big revenue, but also defending itself by the fact that expensive sugar and alcohol products keep people down. healthier Norwegians.
For conservatives, the proposal is mainly about beer, wine and sweets, but not tobacco.
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There has long been concern about cross-border trade in the Storting, but little has been done with excise duties, especially on alcohol, which has not changed since 2013.
Additionally, the government has come under fire from the food industry for dramatically increasing the sugar tax in 2018, something the FRP managed to reverse in the previous budget round.
Helleland says the crisis in the crown has caused her and the Conservative Party’s program committee to see the situation with fresh eyes.
– Our most important task at this time is to get people to work and facilitate the creation of jobs. We are losing many thousands of jobs due to cross-border trade, and we are in a pandemic in which many have lost their jobs, Helleland says, adding:
– New jobs don’t come overnight, and then it’s harder to sit back and see that according to Virke’s figures, we exported almost 8,200 jobs to Sweden, which we could have in this country.
Recent figures this week showed that cross-border trade has naturally dropped by 99 percent in the second quarter compared to 2019, and that the amount of crowns spent in Sweden has fallen from 4.1 billion to a whopping 28 million crowns. .
Helleland notes in particular the loss of jobs in the tourism industry, where many unskilled people, young people and people with minority backgrounds work who could get new job assignments in retail.
It is not a crown measure, but a permanent harmonization
When asked how many billions of taxes conservatives are willing to give up on such a proposal in lost revenue for the state, Helleland responds that this will be offset by the increased tax revenue that new jobs create.
– Norway loses many billions in tax revenue.
– But is this a crown measure, something temporary?
– No, this is intended on a permanent basis, as careful harmonization, but the crown crisis means that we see the problem in a new light.
Helleland notes that measures by the Danish authorities to stop cross-border trade with Germany have been studied. Here, cross-border trade has been cut almost in half by harmonizing taxes on lures like alcohol and sugar to neighboring countries.
– Have you thought about how much you want to cut rates? Do you call it a smooth harmonization?
– Yes, but careful harmonization doesn’t happen overnight either. We must take into account the considerations that exist in this area, and then we must discuss exactly which products should be applied.
Expect a heated debate
The program committee presents the proposal to lower taxes on alcohol and sighs knowing that there are many different opinions on this also internally in the party.
– I hope there is a good temperature in the debate on this matter, but the recommendation of the commission is unanimous, it says and adds:
– It is time to face a new debate with completely new premises. Before, it was about cheaper sodas and beer, but it’s about jobs.
The FRP has long wanted drastic cuts in excise tax, but it has not been relevant for the ruling KrF party to accept such cuts, most recently telling Vårt Land this summer “that the current alcohol policy is fixed.”
Helleland believes that Norwegians will drink beer and soft drinks regardless of cross-border trade, and that the proceeds from these sales are best served by Norwegian companies and industry.
– Retail companies, especially in the food and beverage industry, have been disappointed with the position of the conservatives on the sugar tax. Is this also a sign to these companies that the Conservatives are really a business-friendly party?
– Yes, and we are. The Conservatives are the most business-friendly party, although there have been some reactions to the sugar tax.