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Alcohol producer Arcus was dedicated to producing disinfectant during the pandemic. This caused the tax authorities to react.
Arcus sold around 28,000 liters of disinfectant to emergency services and other social actors who were later subject to an alcohol tax for containing alcohol.
An order for 50 liters of isopropyl alcohol, which initially cost around 2,500 NOK, ended with an additional fee of 27,440 NOK for the Møre og Romsdal fire service.
– There are a lot of strange tariffs in Norway, but I think this will be completely silly, Fire Chief Geir Thorsen told VG in early November.
Øyvind Arntzen, general manager of Øst fire station, told VG that they received an additional tax of almost 40,000 kroner for hand-held alcohol.
The reason is that the Tax Administration imposes large taxes on liquids with a high percentage of alcohol. Arcus requested an exemption for all alcohol recipients, but was told they could not make an exception.
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The fire service purchased hand alcohol for NOK 2,500 and received a crash bill of 27,400.
– We have requested a waiver for everyone we deliver disinfectants to, and we are as disappointed as all of our customers that a fee has to be paid for this, Arcus communications director Per Bjørkum said in November.
However, a fee was imposed, which the alcohol company appealed.
Several parliamentary representatives reacted to the fiscal crackdown and demanded a response from Finance Minister Jan Tore Sanner (H).
– I am confident that the Tax Department will consider all aspects of the case in the subsequent processing of the case. And it is the Directorate of Taxes the proper appeal body when it comes to the decision made by the tax office, Sanner wrote in an email to VG on November 8.
Arcus now writes in a press release that the Tax Administration has waived the requirement for an alcohol tax in its entirety.
– In the appeal process, the Tax Administration has shown good judgment. In a national crisis, exceptions must be possible and this is the right decision, says Erik Bern, Arcus executive vice president.