– We will come up with a consultation note in which we point out to the government that this has been an untidy process. That’s what CEO of Sjømat Norge, Geir-Ove Ystmark, says. Now they are asking for the “salmon tax” to be postponed. The government should rather look at a Faroese model, he believes. It involves a production tax that changes in line with the salmon price. However, the Center Party is straightforward in its answer: Not applicable. Geir-Ove Ystmark and Sjømat Norge have now submitted their consultation note in connection with the ground rent tax. Photo: Frida Brembo / news Faroese model It was in September that the government put forward the controversial proposal for land rent tax on aquaculture and wind power. Since then, the salmon industry has stopped investments worth NOK 35 billion. Facts about ground rent tax Ground rent tax is paid from income you get by exploiting the community’s natural resources, such as water, wind and sea. Comes from the English expression “ground rent”, i.e. ground rent or land rent. When a wind farm has been set up in a mountain area or a salmon farm has been built in a fjord, the area is not freely accessible to others. Access to natural resources is limited, and this limits competition. This makes it easier to get extraordinarily high incomes in industries that utilize natural resources. Basic interest tax must be paid on income the companies receive in excess of what they can normally expect from their own investments and work effort, as a result of this benefit. Basic interest tax is also called super profit. Today there is a basic interest tax on hydropower and oil production, and the government will introduce this on wind power and salmon farming. (Source: NTB) Seafood Norway was early on in criticizing the so-called “salmon tax”. They have now submitted their consultation proposal. There they ask for a postponement of the tax. In addition, they will have a fight over how the new tax is to be calculated. Seafood Norway organizes over 800 member companies. Photo: Frida Brembo / news They are asking the government to investigate a so-called Faroese model. They say it will tax profits to a greater extent. – The government’s model is very complicated and creates great uncertainty. We say that the government must investigate another tax model and ask them to look to the Faroe Islands, says Ystmark. Tax adapted to the industry The industry has always said that they want to pay more tax. Just not according to the proposed model. The core of the dispute lies in the fact that the government wants to tax the industry according to the standard price. This means that a separate council determines a price to be taxed. The council is appointed by the government. Why does the government want tax based on the standard price? To avoid seafood companies selling the salmon cheaply to themselves in order to tax less. However, the industry believes that this will be unpredictable – that they do not know what price they will be taxed at. The Faroese model is different. – We want to be constructive and give suggestions on how the industry can be taxed so that the community can get 3-4 billion from our industry, says Ystmark. He points out: – But we want taxation that is adapted to the aquaculture industry. Out of the question with the Faroese model Ystmark believes that the next year should be used to find the best tax model. At the same time, the organization proposes to increase the production fee now. In this way, the government will be able to bring in the revenues that are expected in 2023. REJECTS: Geir Pollestad says that postponement is out of the question. Nor is a Faroese model applicable. Photo: Odin Omland / news Geir Pollestad (Sp) sits on the finance committee at the Storting. He rejects both postponement and the Faroese model. – The tax applies from 1 January and it is not relevant to use a Faroese model. There will be a basic interest tax on salmon farming in Norway. Facts about ground rent tax Ground rent tax is paid from income you get by exploiting the community’s natural resources, such as water, wind and sea. Comes from the English expression “ground rent”, i.e. ground rent or land rent. When a wind farm has been set up in a mountain area or a salmon farm has been built in a fjord, the area is not freely accessible to others. Access to natural resources is limited, and this limits competition. This makes it easier to get extraordinarily high incomes in industries that utilize natural resources. Basic interest tax must be paid on income the companies receive in excess of what they can normally expect from their own investments and work effort, as a result of this benefit. Basic interest tax is also called super profit. Today there is a basic interest tax on hydropower and oil production, and the government will introduce this on wind power and salmon farming. (Source: NTB) He says, however, that they will go through the 150 consultation comments that have been received carefully. But a change to the entire model is out of the question. – There is a majority in the Storting for this model. It will come, he says and adds: – But we will look at how the facility should be, says Pollestad. Nova Sea is one of the aquaculture companies that have put investments on hold. A new slaughterhouse was to be built here. Photo: Synnøve Sundby Fallmyr / news Were themselves positive about ground rent tax Pollestad says they have listened to the industry. He points out that the industry itself has been involved in investigating the tax model. – When we were going to introduce a production tax of 20 øre, the response from the industry was that it was not the right time or the right way to do it. – The industry itself was involved in investigating the ground rent tax and was positive about it. When we use it, they are against it. The SP politician emphasizes that arrangements must be made for the industry to continue to grow. Very clearly Bjørnar Skjæran is the Minister of Fisheries and Aquaculture. He also confirms that the ground rent tax will be introduced from 1 January. – When the deadline for the consultation input now expires, we will go through them thoroughly, so that we can come up with a final arrangement for the Storting, says Skjæran to news. Fisheries and aquaculture minister Bjørnar Skjæran believes the government has been clear about the industry. Photo: Malin Nygård Solberg / news He believes that the government has been very clear about what should be taxed. And that they have listened to the aquaculture industry. – We have listened to the industry and have had good meetings with them for several months. We have been clear that it is the real income that should be used as a basis and that for 2023 transfer prices apply, says Skjæran.
ttn-69
Now the controversial salmon tax comes into effect – The salmon industry asks for a delay – news Nordland
