Next year there will be savings on the oil crowns. The government announces that the use of oil money will be reduced by NOK 18.3 billion. The government hopes that it will help to curb the price increase that has taken hold. The biggest sums that reduce the use of oil money are increasing taxes and fees. In total, the government is announcing tax and duty changes which, on an annual basis, are calculated to bring in NOK 33.6 billion more from the business sector and private individuals. Here are some of the largest sums the government will collect in taxes and fees: 16 billion in high-price contributions from hydro and wind power. 7.7 billion from increasing employer’s tax by 5 per cent for incomes over NOK 750,000. 2.15 billion from the introduction of ground rent tax for the aquaculture industry. 2 billion from the introduction of ground rent tax for onshore wind power. 2.4 billion from increasing wealth tax from 0.95 to 1 percent. At the same time as taxes and duties are increased, the government expects that spending on the state budget will increase by NOK 166 billion. Finance Minister Trygve Slagsvold Vedum was grilled by the Storting after the budget was presented. Photo: Terje Pedersen / NTB The proposals for increased taxes and fees are estimated to bring NOK 46 billion more to the state next year. Part of the reason why this figure is higher than the annual effect of the changes is that the new proposal for taxation of the power industry applies to the income year 2022, while the money will not come in until 2023. Fears of a sudden stop The backdrop for the budget is high energy prices, persistently strong price growth and prospects of economic decline. To get price inflation under control, the economists agree on the medicine: The use of money from the state should decrease. Increased taxes and fees are therefore the wrong medicine now, believes Ole Erik Almlid, director of NHO. – We think it will be tougher in 2023 than what the government plans. Then the answer is not to use private companies and private owners as offsetting items at a time when we need more money for green transition and more jobs. We are disappointed by this. The state budget paints a positive picture of the Norwegian economy in 2023. They expect price growth to fall to 2.8 per cent next year. They believe unemployment will remain at 1.7 per cent, while the economy is expected to grow by 1.7 per cent. NHO believes the government is too optimistic. They predict higher unemployment and weaker economic growth. – Then the answer is not to increase taxes and levies, and impose an even greater burden on companies. I fear that this will be an even bigger abrupt stop than it could have been. The budget puts an end to companies’ ability to face a harsh winter, believes Stian Sigurdsen. He is director of social impact in Virke. Stian Sigurdsen, director of social impact at Virke, comes out hard against the government. Photo: Stian Lysberg Solum / NTB – What business needs now is a policy that ensures investment, growth and innovation throughout the country. Here they hand out crumbs with one hand, while they sweep up with the other. Disagree that the business sector must pay We must tighten to avoid excessive price growth, Finance Minister (Sp) Trygve Slagsvold Vedum responds to the criticism. – Ultimately, it is about people’s security that we are now tightening the use of oil money to curb price inflation. – This appears to be a project where business has to bear the burden and the public sector escapes. Why have you chosen to do it this way? – I completely disagree with that. Public growth is lower now than it was when the Conservatives were in power. He points out that the large sums the state will collect come from increased tax on power production. The normal corporation tax is unchanged. – Then we must remember that these are incredibly demanding times. Previously we had corona, now we have war, refugee flows, huge price increases. We must finance and strengthen the Armed Forces. Get support from the budget partner Since the government parties Ap and Sp do not have a majority alone in the Storting, they are dependent on support from SV to pass the budget. SV leader Audun Lysbakken is positive about more redistribution in the state budget. Photo: Håkon Mosvold Larsen / NTB The Socialist Left Party believes that the government is going in the right direction in tax and distribution policy, but that they are not going far enough. – It is gratifying that a budget with fairer distribution as a goal is finally being presented. But it must be redistributed more strongly and we need a completely different prioritization of climate and nature. The government’s budget proposal is unfortunately not fair enough and not green enough, says SV leader Audun Lysbakken. – Everyone must prioritize harder, except the state In this year’s state budget, the government will scrap the ABE reform. Last year, the previous government assumed that the reform would save NOK 1.9 billion. – This is a government that says that everyone must prioritize harder, except for the state, says fiscal policy spokesperson in the Conservative Party, Tina Bru, from the floor of the Storting. Bru came out hard against the finance minister. Conservative deputy leader Tina Bru criticizes the government’s ability to prioritize. Photo: Hanna Johre / NTB – Since the election last year, the Labor Party and the Center Party have increased taxes by NOK 53 billion. That is many billions above Rødt’s desired tax level, which was flatly rejected as unrealistic before the election, she says. Roy Steffensen of the Frps also gives the government a hard time. – The business world is now down to its knees, and then it will be completely wrong to load them with heavy bags in their rucksacks while they are trying to get up.
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