AP and SP in Trøndelag are calling on their government to drop plans to introduce a controversial salmon tax from January.
A large majority of Trøndelag County Council (Ap, Sp, KrF, V) believes that there is a basis for land rent in the aquaculture sector, but cannot support the land rent tax proposal as it is proposed structure.
The County Council therefore believes that the introduction of the levy should be deferred until after the Storting has adopted the final deal, a County Council press release said.
– This is a clear signal from the country’s heaviest and most important aquaculture region, said County Mayor Tore O. Sandvik (Ap) and County Deputy Mayor Tomas Iver Hallem (Sp).
Basic interest tax there is talk of a separate tax that the government has proposed to introduce, because the aquaculture industry derives its income from a common public resource; the sea.
The basic interest tax for the aquaculture sector mainly affects salmon farms.
They point out that the aquaculture industry is Norway’s second largest export industry, and Trøndelag is one of the largest aquaculture regions in the country.
For Trøndelag, industry makes up a significant part of value creation in the county, and salmon is Trøndelag’s most important export product: two-thirds of Trøndelag’s raw material exports measured by export value are salmon and the Trøndelag accounts for between 20 and 25 percent of the Norwegian production of farmed salmon, says the press release.
It also refers to large ripple effects in related industries.
– I highly recommend it
They defend the rent tax, but not the government’s management.
– There are reasons to say that the aquaculture industry has to pay a land rent. They make use of a community resource limited by licenses and collect extraordinary rents higher than normal rents, but the introduction of land tax must still take place in a way that safeguards the predictability and safety of the workplaces. County Council is therefore calling for the proposed land rent tax to be changed before it is introduced, says Labor County Mayor Tore O. Sandvik.
– Trøndelag County Council gave a clear message today that the government needs to review the proposal here and I would strongly recommend that the tax change be anchored in a broad agreement at the Storting. The deal presented in the proposal needs to be changed and simply cannot be introduced at the time the proposal is submitted, says County Deputy Mayor Tomas Iver Hallem of the Center Party.
Ask for unifying solutions
In the statement, they underline that the majority composed of Ap, Sp, KrF and V issues a consultative opinion on the proposed land rent tax on aquaculture “which has clear expectations that the regime should be changed”.
– The county council also requests that models other than the one proposed at the “standard price” be taken into consideration. Pending a decision in Storting, the proceeds calculated for 2024 can be covered through a temporary increase in the production tax, they write.
– I would recommend the government to now take up the call from industry to temporarily increase the production tax in 2023 in order to collect the same amount calculated in the tax model, waiting for them to read the consultation input and anchor a broad agreement in all the blocks in Storting for a new model. The best are unifying solutions, says Sandvik.
– This is good
– This is good. The government should listen to the country’s largest aquaculture county and postpone the process, investigate alternative tax models and say yes to the industry’s proposed transitional deal that will ensure increased income for the community, says Geir Ove Ystmark, head of Sjømat Norge, representing fishing companies.
Adds:
– I am confident that we will be able to find solutions that guarantee both the industry and the community and workplaces. This is a good decision by AP, SP, KRF and V in Trøndelag County Council.
VG is in contact with State Secretary Lars Vangen (Sp) in the Finance Ministry, who says that the Finance Minister, Trygve Slagsvold Vedum (Sp), does not have the possibility to answer questions related to the case on Wednesday afternoon and evening.
