Cookie Consent by Free Privacy Policy Generator
23 C
Thursday, July 18, 2024

State budget’s everyday effects

Details of the government’s state budget proposal this week will have an effect on the everyday lives of most Norwegians if they win majority support in Parliament. Here’s a rundown of some of the highlights:

Some taxes will go up, others will come down, if the government’s state budget proposals win majority support in Parliament. PHOTO: Norges Bank

There won’t be any increase in Norway’s 25 percent VAT (called moms in Norwegian) but there will be some slight increases in other taxes.

Unleaded fuel at the pump will cost more, with its tax moving up 1.5 percent to NOK 5.25 per liter (equal to around USD 2.65 per gallon). The tax on diesel will rise by 1.6 percent, to NOK 3.81 per liter.

Norway’s already high taxes on alcoholic beverages will go up again, by 1.5 percent on spirits and 1.4 percent wine and beer. The tax on chewing tobacco (snus) will rise from NOK 105 to NOK 107 (USD 13.30). Cigarettes will also become 1.5 percent more expensive.

The government wants to put a cap on how much local municipalities can charge in property tax. They’ve been able to tax appraised value by as much as 7 percent, but that will be lowered to a maximum of 5 percent. Some angry local officials have already claimed they’ll simply raise appraisals in order to maintain the same amount of tax revenues.

Basic tax levels on both personal and company income, meanwhile will be lowered  from 23 to 22 percent. The standard deduction when calculating Norway’s tax on net worth will be increased, meaning the so-called formueskatt (fortune tax) will only be assessed on net worth over NOK 3 million for a married couple.

The government also intends to lower the tax on electricity by 1 øre per kilowatthour. That will lead to overall tax relief of NOK 650 million, according to the finance ministry.

There will also be some changes to Norway’s controversial seat tax on airline travel, with flights out of Europe to be charged a higher tax of NOK 200 per passenger while other flights will be taxed NOK 75 per passenger. That will rise to NOK 84 from January 1. staff



For more news on Arctic developments.



If you like what we’re doing, please consider a donation. It’s easy using PayPal, or our Norway bank account. READ MORE