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The government will set a rate of 40 øre per kilogram of fish produced on farms along the coast.
It will provide around NOK 500 million a year in higher revenues to the municipal sector starting in 2022, according to a government statement on the revised state budget.
Finance Minister Jan Tore Sanner says the aquaculture industry contributes to significant value creation and employment along the coast and therefore deserves good and predictable framework conditions.
– Therefore, it is natural that part of the return falls to the community through a production tax, says Finance Minister Jan Tore Sanner (H).
The government proposes that this tax replace parts of what municipalities have earned since 2017 by selling new agricultural licenses.
Karlsøy Mayor in Troms Mona Pedersen for Karsløy Felleslite is very positive about the government proposal. The municipality he manages today houses several fish farms.
The proposal can send 500 million of the revenue from the facilities, like here in Ånneland in Sogn and Fjordane, back to the host municipality.
Photo: Merete Høidal / NRK
These are the government’s “salmon tax” proposals:
- The government will propose in the state budget for 2021 to introduce a production rate of øre 40 per kg of salmon, trout and rainbow trout produced. Profits are estimated at around NOK 500 million. The levy will be introduced with effect from January 1, 2021 and will be paid as an after-tax in 2022. The levy will be paid to aquaculture municipalities and county municipalities in 2022. The production levy will go to the Fund. of Aquaculture and will be distributed according to the distribution codes that apply to the fund at all times.
- Since 2017, aquaculture municipalities have received a portion of the proceeds from the sale of new permits and increased capacity on existing permits through the Aquaculture Fund. The production fee will also include the production of previous permits that are granted free or at low cost.
- Aquaculture municipalities and county municipalities will receive NOK 1 billion in each of the years 2020 and 2021 through the Aquaculture Fund.
- Of sales and auction revenue from increased capacity and new permits beginning in 2022, 75 percent is from the state and 25 percent from municipalities and counties.
- No surplus-based basic interest tax is proposed.
Source: regjeringen.no
Mayors satisfied
Karsløy Mayor, Mona Pedersen (Karsløy Community List).
Photo: Eirik Hind Sveen / NRK
– Previously we have received payments based on the growth of the industry. Now we will earn income based on production. It is much more predictable, which is the most important thing for us, says Pedersen.
She says the farming community still wants an area fee. She will continue working to achieve this, but the government’s proposal presents new opportunities.
– We cannot create new positions with unpredictable income, so this gives us new opportunities for growth.
Senja Mayor Tom Rune Eliseussen (Sp).
Photo: Linda Pedersen / NRK
Tom Rune Eliseussen (Sp) is the mayor of Senja in Troms, which is another large fish farming municipality. Harn is also positive, but says it remains to be seen if the proposal is as good as what they really wanted.
– We are very sure that there will be no basic interest tax. We wanted an area tax, and we have to see if the proposed production rate makes up for it.
– I get paid to fix it
In addition to the “salmon tax,” the government proposes that 25 percent of future sales revenue and auction revenue from aquaculture licenses be added to aquaculture and county municipalities.
Based on this year’s capacity adjustment, the government proposes that one billion Norwegian kroner be allocated to the municipal sector in each of the years 2020 and 2021 through the Aquaculture Fund.
– We are concerned that the municipalities that contribute to facilitating aquaculture receive a part of the income from aquaculture. Now they get a more stable and predictable production rate, plus a share of future auction revenue, says Minister of Fisheries and Seafood Odd Emil Ingebrigtsen (H)
He believes the proposal better balances the consideration of industry and revenue for municipalities.
Seafood Norway CEO Geir Ove Ystmark is pleased that politicians have listened.
Geir Ove Ystmark at Seafood Norway is pleased that the government has deviated from the proposal for a basic interest tax for the aquaculture industry.
Photo: Øyvind A. Haram / Seafood Norway
– I’m glad the government has been listening
– This is a proposal proposed by the industry and the host municipalities along the coast. We are confident that you will get a tax that goes to municipalities, rather than a comprehensive basic interest state tax, says Ystmark.
He thinks the most important thing is that there will be no basic interest tax, which is a state tax on all the profits of a company.
Before Christmas, a government-appointed committee proposed to tax fish farming in the same way as profits from the oil and energy industry.
However, the government does not plan to do so.
