The farming industry has until now paid 22 per cent in corporation tax. Now the government wants an additional 40 per cent ground rent tax. The government informed about this during a press conference on Wednesday. In total, there will be 62 percent tax. A near tripling of the starting point – if the proposal is approved in the Storting. – I have never been part of a bigger shock from one day to the next. It is a tax level that will stop all development in our industry, Ole Eirik Lerøy starts with. He is chairman of Mowi, one of Norway’s largest salmon farmers. Tonight, Finance Minister Trygve Slagsvold Vedum met an angry and despairing industry in the Debate. Fishing peak Ole Eirik Lerøy. Photo: Håkon Benjaminsen / news Fears for the districts Finance Minister Trygve Slagsvold Vedum is clear in his first line in tonight’s Debate: – The community needs more money. If we don’t do this, we may have to cut hospitals, defense or other things. Finance Minister Trygve Slagsvold Vedum during the evening’s Debate. Photo: HÅKON BENJAMINSEN / news Aino Olaisen emphasizes the important importance of the fishing industry in several of the districts. She is positive about paying more in tax, but fears the tax level could destroy several small communities. – We have turned population decline into positive growth. We have created thriving island communities and 400 secure jobs in the rural areas. – But the fishing industry was left with 715 million in profit last year after taxes paid? – I think we can pay more in tax, but I am concerned not to put these jobs at risk, Olaisen replies. Fisherman billionaire Aino Olaisen. Photo: HÅKON BENJAMINSEN / news She also said that they have informed their employees that two of the company’s projects must be put on hold. – There are projects worth NOK 3.3 billion. But we dare not bet on them until we have an overview of what this entails. Vedum replied that it is part of the Norwegian model that companies with a profit must pay more to the community. Fiskeritopp is considering giving up Ola Braanaas, CEO of Firda Seafood, Aino Olaisen, chairman and owner of Nova Sea and Ole Eirik Lerøy, chairman of Mowi, are among those who will meet the finance minister. Fisherman billionaire Ola Braanaas. Photo: Marit Hommedal / NTB Billionaire Ola Braanaas has been involved in fish farming since the 80s. He has long feared the tax increases from the government. – If our tool – which is the capital, disappears – and I can’t do the job I want to do, then maybe my time as an owner in this company is over, said Braanaas in the Debate. Criticism from own mayor SP mayor Sigrun Wiggen Prestbakmo also met to criticize the tax. She too fears for the local communities along the coast. Mayor of Salangen municipality Sigrun Wiggen Prestbakmo (Sp) during the Debate. Photo: Håkon Benjaminsen / news – I think this tax is a fundamental mismatch – a fundamental error message in my head. This tax affects family-owned businesses and the small players. Vedum replied that several of the small businesses are being protected and that Prestbakmo is wrong. – The five largest companies pay two-thirds of all tax. We have also said that we want a minimum deduction of 5,000 tonnes of licensed biomass. That is not true, says Prestbakmo. – It is regrettably wrong. Large parts of the industry along the coast will be affected. The local communities will be left as the losers. Billions in the red The government believes that the breeders should pay the tax, among other things, because they use common resources in the sea. At the same time, the profits for many years have been very large, compared to other industries. The proposal comes despite a national meeting resolution from both Ap and Sp, which say they are against ground rent tax for the salmon industry. – I was against the model that came in 2019. We have been concerned with creating a model that protects the smallest players. We want the large revenues to benefit the communities. Therefore, 50 per cent of the tax must be returned to the municipalities, said Vedum during the Debate. He added that he completely disagrees that he has turned the case around. Vedum triggered an all-time stock market crash in the salmon shares on Oslo Børs on Wednesday after the press conference. Breeding champions such as Mowi and Salmar lost billions in value. Ole Eirik Lerøy said during the Debate that they lost 60 billion on the stock exchange yesterday. Several of the country’s richest thus became billions poorer on paper within a short time.
ttn-69
– Never been part of a bigger shock – news Norway – Overview of news from different parts of the country
