Water and sewage charges are increasing sharply in a number of Norwegian municipalities. From the start of 2023 to the start of 2024, fees for water and sewage increased by almost a quarter. Now Finance Minister Trygve Slagsvold Vedum (Sp) reveals that the government will reduce VAT from 25 to 15 per cent. – It is to make costs lower for people. The VAT cut will mean something regardless of residence and living situation, says Prime Minister Jonas Gahr Støre (Ap). – Now we are taking measures that apply to all households, regardless of whether you own or rent, says Støre to news. It was VG who first mentioned the budget leak. The VAT on water and sewage will therefore be the same as for food. – Because it’s a bit strange that there is higher VAT on the water you draw from the tap at home, than the water you buy in a bottle in the shop, says Vedum. Sure to hit The VAT cut will come into force from spring 2025. On an annual basis, the measure will cost the state approx. NOK 4 billion, says the finance minister. – It’s hit-and-miss, it hits everyone. The pensioner needs water, the family with children needs water, the student needs water. Everyone needs it. The Minister of Finance is sure that people will notice the VAT cut. Photo: NTB – It is not possible to charge more than what it actually costs to deliver water or have sewage removed. Therefore, we know that the money reaches people when we lower the VAT rate. Several municipalities plan to increase fees for water and sewage next year. As many as 40 percent of the municipalities that responded to a survey by KS say that they will increase the fees by more than 20 percent. – How confident can people be that they will actually get a reduced bill, that this whole tax cut will not be eaten up by the tax increase next year? – We can be absolutely sure that this tax cut will come to fruition. Because if the municipality makes investments and increases its fees, it will possibly become even more expensive for people, if we had not cut that fee here. – Good news for Oslo residents. The capital is one of the places where taxes go up in particular. Here, a price shock on municipal taxes is expected in the next few years, with an increase of as much as 63 percent until 2027. – If this is true, then it is good news for the citizens who pay a lot in taxes, says finance councilor in Oslo Hallstein Bjercke (V) to news. He says the city council must take a closer look at the facility when the budget is presented on Monday. – But I am positive about anything that eases the tax burden on the residents of Oslo, he adds. Published 03.10.2024, at 19.03 Updated 04.10.2024, at 09.35
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The government will reduce the tax on water and sewage by 4 billion a year – news Norway – Overview of news from different parts of the country
