Faroe Islands next on tax hit list?

Fish farmers on the Faroe Islands could be next to face higher government taxes, it emerged today.

Bakkafrost, the country’s largest salmon farmer has issued a statement warning that administrators are working on proposals to adjust revenue taxes to reflect the recent high increases in salmon prices.

The news follows the Norwegian bombshell yesterday where the country’s largest salmon company’s face the prospect of a new 40% land tax.

Bakkafrost CEO Regin Jacobsen issued a statement last night which read as follows: “With reference to the press release 28 September 2022 from the Norwegian government regarding a proposal to introduce a resource tax on salmon and trout farming in Norway.

“Bakkafrost is subject to tax in the countries where Bakkafrost operates. This does not include Norway.

“Since 2014, the salmon farming industry in the Faroe Islands has been subject to a special revenue tax on the value of harvested fish calculated using actual salmon spot prices.

“The current tax rate is between 0.5% – 5% depending on the salmon spot price. The Faroese Government is currently working on a proposal to adjust the revenue tax to reflect the recently high salmon prices as well as the increasing production costs for the salmon industry.”

“The proposal has not yet been presented to the Parliament for voting. Bakkafrost will send a press release to the market once the proposal has been presented to the Parliament.”

Bakkafrost has extensive salmon interests in Scotland through its acquisition of the Scottish Salmon Company.

Other companies farming in the Faroe Islands include Hiddenfjord and the Norwegian giant Mowi.