Every other year there is an auction in the farming industry. Permits are sold here to produce more salmon, trout and rainbow trout in areas where the lice situation makes it safe. Through Wednesday and Thursday, 24,644 tonnes of MTB were sold to companies along the Norwegian coast for a total value of NOK 3.8 billion. This is a decrease of just over NOK 3 billion from the previous auction round in 2020, which ended at NOK 6.9 billion. The reason is the government’s proposal for a new ground rent tax for the farming industry. That’s what Sjømat Norge thinks. – Quite obviously. There has been a positive development in the aquaculture industry and a willingness to invest in growth in aquaculture. This sharp drop in purchases and prices is solely due to the uncertainty the industry is facing, says managing director Geir Ove Ystmark. Geir Ove Ystmark is managing director of Sjømat Norge Photo: Øyvind A. Haram / Sjømat Norge 8.5 billion without tax proposal The analysis firm Kontali has calculated what the auction sum could have been if the ground rent tax had not been proposed. The company has based itself on figures from the previous auction and believes the sum would have been at least NOK 8.5 billion. Paradoxically, this means that the state and municipalities may have missed out on NOK 4.7 billion from the auction alone. That is significantly more than what the estimated income from the ground rent tax would add to the community. This is basic interest tax Effective rate of 40 per cent. Applies to the production of salmon, trout and rainbow trout. A floor deduction of 4,000-5,000 tonnes ensures that only the largest players will pay the ground rent tax. Effective date from 1 January 2023. Tax revenues are estimated at NOK 3.65-3.8 billion annually. The tax revenue is distributed equally between the state and the municipal sector. The proposal is submitted for consultation today with a deadline of 3 January 2023. Source: The government – The auction provides about half of the income that was expected before the government presented a proposal for a new taxation of the aquaculture industry, Ystmark continues. – This means that Norway has lost large amounts of income to the state, municipality and county. Before the auction, Sjømat Norge and several companies had asked the Ministry of Trade and Fisheries to postpone the auction pending clarification on the proposed ground rent tax. But the industry was refused by the ministry and the auction went ahead as planned. – About as expected Only three quarters of the mass that was on auction was sold. Fisheries and Oceans Minister Bjørnar Skjæran (Ap) believes the result of this year’s auction was as expected. – Around three quarters were sold at the auction. It is roughly as expected as the situation is now, he says to news. Fisheries and Oceans Minister Bjørnar Skjæran (Ap) says this year’s auction was about as expected. Photo: Rebekka Ellingsen / news – Seafood Norway believes that the state is missing out on more than 4 billion based on analyzes that have been carried out if one had waited. What do you say to that? – Now we will summarize after the auction and make a decision about what we will do with the remaining quarter. – Then the industry must also contribute taxes through ground rent tax and the ordinary corporation tax, in addition to creating great value and ripple effects along the entire coast. He believes there were several elements that had to be assessed against each other in the question of whether the auction should be postponed. – A major advantage is that the host municipalities receive their remuneration. We will do everything we can to ensure that payment is made before the new year, continues the minister. – In addition, everyone who wanted to buy growth has had the opportunity to do so. This means that there will be growth and development at the companies that have bid and been awarded.
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The government may have lost 4.7 billion during the salmon auction – news Nordland
