Ground rent tax in the Norwegian fish farming industry

The Norwegian government has proposed a ground rent tax for the fish farming industry, where parts of the profits will return to the municipalities and local communities. The high profitability of the aquaculture industry comes from our shared natural resources and skilled people along the coast, the Norwegian government writes in a press release Friday. 

Recently, there has been a major debate in Norway regarding the introduction of the ground rent tax. 

"There will be ground rent tax", Fisheries and Oceans Minister Bjørnar Skjæran (Labor) states. 

Finance Minister Trygve Slagsvold Vedum (Center) says the government will not postpone the ground rent tax, as the industry has requested.

"We will introduce ground rent tax from January 1st. We believe that it is right that more of the great value creation returns to the local community, to the coastal counties, and to us as a community. That's how it will be", Vedum explained to the press after the meeting they had with the industry organisations, writes Norwegian broadcaster NRK.

The government has proposed using standard prices to calculate the basic interest tax the companies must pay. 

The principle that it is the real income that should be the basis for the ground rent tax is fixed. The government is also considering establishing an independent council to determine standard prices as a basis for the tax, the press release states.

"In the proposal presented to the Storting [Norwegian Parliament, journ.note], we will ensure a taxation that builds on the goals in the Hurdal platform of more jobs, greater value creation and increased export income from the aquaculture industry. For the government, it has been important that the host municipalities come out better than today, and that the bottom deduction is of such a size that it is mainly the largest players who pay ground rent tax, says Fisheries and Oceans Minister Bjørnar Skjæran.

"The aim is to find the market price for the salmon, and there are several possible ways to do that. I would like to emphasize again that there will be no ground rent tax on processing", says Finance Minister Vedum.