Conservative Party Aims to Streamline and Lower Salmon Tax Rates

Conservative Party Aims to Streamline and Lower Salmon Tax Rates

– We are proposing a significant tax break, with a lower rate and major simplification that makes it easier for the aquaculture industry along the entire coast, says deputy leader Henrik Asheim in the Conservative Party to NTB.

Asheim has led the work on a new party program in the Conservative Party. He explains that the party will both give and take when it comes to the aquaculture industry.

In the party’s new programme, which will be heard on Monday, it is proposed to lower the current cash flow tax of 25 per cent and simplify the entire tax system considerably.

– The Conservative Party wants to remove the standard price council, which is very difficult to translate to this industry and instead use the real market prices, says Asheim.

Record exports

Last year, Norwegian farmed salmon and trout were exported for close to NOK 130 billion, according to Norway’s Seafood Council. Slightly driven by the weakening Norwegian krone, there was an increase from the previous year – and a record. As much as 95 percent was salmon, while trout only made up about 5 percent.

In the same year, the government also managed to get a majority to introduce the long-announced salmon tax. After strong opposition from both the opposition and the industry itself, the government got the country a compromise of 25 per cent taxation based on so-called standard prices.

With that, an income to the treasury of around NOK 5 billion was expected instead of close to NOK 8 billion, which was the basis for the assessment of a tax rate of 35 per cent.

But it was not just the tax itself that was criticised, it was also the way it was to be calculated. This is especially what the Conservative Party will do something about if they are in a position to do so, says Asheim to NTB.

Same income – more predictable

The right-wing deputy leader points out that the industry was also clear that they could contribute more tax than before, when the aquaculture tax was introduced. The industry then outlined revenues of around NOK 4 billion.

– Our main goal is to create a tax system that is more predictable, easier to understand, less bureaucratic, and which facilitates more growth in the industry, says Asheim.

Deputy chair of the program committee in the Conservative Party is Mari Holm Lønseth from Trøndelag. With direct close contact with the farming environment along the coast, she conveys her frustration with the bureaucratic model on which the current ground rent tax is built.

Stop investments

– There are several players who tell us that they now spend an incredible amount of time and money dealing with a complicated set of regulations. They don’t have an overview of what tax they have to pay, says Lønseth.

The consequence of the introduction of the tax has been a halt in investment among many companies along the coast.

A report from Sjømat Norge has shown that expenditure on consultancy and advisory services in the aquaculture industry has almost doubled after the Støre government introduced the salmon tax.

– It is the entrepreneurs in the local community, boat builders and others who make nuts, who have been largely affected by the fact that investments have also been put on hold, and that there has been great uncertainty in many district communities due to the Støre government’s arrangement, says Lønseth to NTB.

Makes demands in exchange

But the Conservative Party will not only make taxes lower and everyday life easier for the farming companies. Asheim also announces new requirements in exchange for the industry saving time and money dealing with the tax authorities.

– On the other hand, the Conservative Party will also set stricter requirements for both sustainability and animal welfare than is the case today, he says.

– Time is money for the aquaculture industry as well. If they can instead spend their time developing new systems that allow them to produce more fish in a more sustainable way, then it is better than them having to spend time and money on lawyers and consultants just to understand how much tax they will pay, says Asheim.

The seafood industry wants more changes

Sjømat Norge actually wants the tax to be abolished and believes that aquaculture is not a ground rent industry.

– At the same time, we know that there is a political majority for it. Then it is good that the Conservative Party wants to lower the rate sharply, make significant changes and abolish the highly bureaucratic standard price council, says managing director Geir Ove Ystmark.

– This is a rare bureaucratic move that entails a great risk of incorrect taxation. There is also a need for other changes so that the tax will be less harmful. In practice, this means that we get a model that is more appropriate for the aquaculture industry, and which ensures predictability, he adds.

This is this is good, say Ystmark and Sjømat Norge, which will continue to introduce changes in the salmon tax for the Conservative Party and other parties.

#Conservative #Party #salmon #tax #simpler
2024-09-10 07:21:15

Here are some PAA (People Also Ask) related questions for the title “The Future of Aquaculture Taxation: A Shift Towards Simplification and Sustainability”:

The Future of Aquaculture Taxation:⁤ A Shift‍ Towards Simplification and Sustainability

The⁤ aquaculture‍ industry ​has been a significant‍ contributor⁢ to Norway’s economy, with record exports of farmed salmon and trout reaching NOK 130 billion in the⁣ previous ⁣year [[1]]. However, the industry has been facing challenges‍ with the ‌current‌ tax system, ‌which has led to a halt ⁣in investments ⁢and​ increased bureaucratic burdens. In light of this, the Conservative Party has proposed a significant ⁤tax break, with ⁤a lower rate and major simplification, to make life⁤ easier for the aquaculture industry along ⁢the entire coast⁤ [[1]].

Current Taxation Landscape

Income‍ from aquaculture ⁤businesses is generally subject to ⁢ordinary Corporate Income​ Tax (CIT) at​ varying ⁣rates, ranging from 12.5% (China and Ireland) to higher ⁢rates in other countries [[2]]. In Norway, the current cash flow ⁣tax is 25%, which was ‍introduced after strong ​opposition from both the ⁤opposition and the industry itself ⁢ [[1]]. The⁣ government had initially planned to introduce ​a tax rate of 35%,⁣ but a compromise was reached‍ at 25% based on standard ‌prices. ⁣However, the industry has been‍ critical of the tax ⁣system, citing complexity and bureaucratic hurdles.

The ‌Conservative⁤ Party’s Proposal

The Conservative Party⁢ has proposed ‍to lower the current cash flow tax of 25% and simplify the⁤ entire ‍tax system considerably [[1]].‍ The party wants⁢ to⁢ remove the ​standard price council, which ⁤is difficult to​ translate to ‌the aquaculture⁤ industry, and instead use real market prices. This proposal is aimed ​at creating a more predictable, easier to understand, and⁢ less ⁣bureaucratic tax system ⁣that facilitates more growth in the industry.

Simplification and Sustainability

The Conservative Party’s proposal is not only about lowering taxes but also about making demands in​ exchange. The party wants ⁣to set stricter requirements for sustainability and animal welfare than is currently the case. According to Henrik Asheim, the⁤ party’s ‍deputy leader, “Time ⁤is money for the aquaculture industry as well. If⁢ they‌ can instead spend ⁤their time developing new ‌systems that ⁣allow them to produce more fish in a more sustainable way, then it is⁣ better than them having to spend ‍time and money on lawyers and consultants ‌just‌ to understand how much tax they will pay” [[1]].

Industry’s⁣ Response

Sjømat Norge, the seafood industry’s representative, wants the tax to be abolished and believes that aquaculture is⁤ not a ground rent industry. However, they acknowledge that there is a political majority for the tax and welcome the Conservative Party’s proposal ‌to lower the rate sharply and make ‍significant ⁤changes [[1]].

Global⁢ Perspective

Globally, the taxation of aquaculture varies widely. ⁤A KPMG report highlights the different tax rates and regimes in ⁤various countries, ranging from 12.5% in ‌China and Ireland to higher rates in other countries ⁣ [[2]]. Norway’s current ⁣tax rate of 25% is relatively high compared to other countries, and the ⁤Conservative Party’s proposal to ⁢lower it is seen as a⁤ positive step ⁤towards making the industry more competitive.

Conclusion

The Conservative Party’s⁤ proposal⁢ to simplify ‍and lower the ⁢tax rate for ⁤the aquaculture industry is ⁣a significant ⁣step towards creating a more predictable ⁤and sustainable ​industry. The industry’s growth has been hindered by the ‍current bureaucratic and complex tax system, and the proposal aims to address these issues. ⁢While⁤ the ‍industry wants ‍the tax to be abolished, the Conservative‍ Party’s proposal is seen⁣ as a​ positive step⁢ towards creating a‌ more sustainable and predictable tax regime.

References:

[1]

<a href="https://assets.kpmg.com/content/dam/kpmg/no/pdf/2021/07/NOTaxationOfAquaculture2021_v3.pdf”>[2]

[3]

Here are one PAA (People Also Ask) related question for the title **”The Future of Aquaculture Taxation: A Shift Towards Simplification and Sustainability”**:

The Future of Aquaculture Taxation: A Shift Towards Simplification and Sustainability

Aquaculture, a significant industry in Norway and Iceland, has been facing challenges due to complex taxation systems and high tax rates. In Norway, a new aquaculture tax was introduced in 2023, which has been met with criticism from the industry[[[3]]. The Conservative Party has proposed a significant tax break, with a lower rate and major simplification, to make it easier for the aquaculture industry along the entire coast [[1]].

Record Exports

In 2023, Norway’s farmed salmon and trout exports reached a record high of NOK 130 billion, with salmon making up 95% of the total exports [[1]]. This increase was driven by the weakening Norwegian krone, and it has been a significant contributor to the country’s economy.

Current Taxation System

The current aquaculture tax in Norway is based on standard prices, which has been criticized for being difficult to translate to the industry[[[3]]. The tax rate is 25%, which is expected to generate an income of around NOK 5 billion for the treasury [[1]]. However, the industry has been clear that they can contribute more tax than before, with revenues of around NOK 4 billion.

Proposed Taxation System

The Conservative Party has proposed a new taxation system that is more predictable, easier to understand, less bureaucratic, and facilitates more growth in the industry [[1]]. They want to remove the standard price council and use real market prices instead. This is expected to make everyday life easier for the farming companies and reduce the bureaucratic burden on them.

Consequences of Current Taxation System

The introduction of the current tax has resulted in a halt in investment among many companies along the coast [[1]]. A report from Sjømat Norge has shown that expenditure on consultancy and advisory services in the aquaculture industry has almost doubled after the Støre government introduced the salmon tax [[1]]. This has affected entrepreneurs in local communities, boat builders, and others who make nuts, leading to great uncertainty in many district communities.

Iceland’s Taxation System

In Iceland, the taxation system for aquaculture is based on earnings (revenue minus costs) [[2]]. The corporate taxes and resource tax are part of this system, with other taxes and fees shown as percentages of the value.

The Future of Aquaculture Taxation

The future of aquaculture taxation is shifting towards simplification and sustainability. The Conservative Party’s proposal is a step in this direction, and it is expected to benefit the industry and the economy as a whole. The industry is also expected to make concessions in exchange for the tax break, such as stricter requirements for better environmental standards.

**PAA (People

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