Conservatives pledge cut in salmon tax

With a general election in Norway just a year away, the Conservative Party is promising big cuts to the salmon tax.

The Conservatives, known in Norway as the Høyre Party, and their more right wing allies are currently ahead of the ruling Labour-Centre Party alliance in the opinion polls. However, the gap is not huge and the salmon tax – also known as the “ground rent” tax – is not such a major issue in towns and cities away from fish farming areas.

Erna Solberg, former premier and Høyre Party leader (pictured) told a recent seafood conference that the country needed to do something about the salmon tax.

This week, Conservative Deputy Leader Henrik Asheim told the leading news agency NTB that the party was planning a significant tax break if it is elected.

He suggested a lower rate, probably about 15% instead of the current 25% plus a major simplification of taxes on the aquaculture industry. The coalition had originally proposed a rate of 35% but relented following political and industry pressure.

The Conservative Party also wants to abolish the standard price council, which he said does not provide a realistic measure. The price council determines the deemed price of salmon as a basis for taxing producers. Instead, the Conservatives would prefer to use real market prices as a basis for taxation.

Originally, the Conservatives had proposed removing the ground rent tax altogether but after consulting the industry it decided on a reduction in the rate instead.

The party also wants to cut bureaucracy in the industry. Scrapping the price council, and instead basing taxes on what the companies report about their income, would be one way of doing that.