Faroes government moots tax hike for salmon farmers

The new Faroe Islands government is proposing a big rise in its salmon ground rent tax, doubling the rate to 20% at the top end. The surprise news was disclosed last night by Bakkafrost, the country’s largest salmon farmer which said the proposal has gone out to the industry for consultation before it is voted on by the Faroese parliament. The rise is higher than that suggested by the previous administration but Faroe Islanders elected a new Social Democrat led government in December. The new proposal consists of nine tax rates which range from 0.5% to 20%, calculated around the FishPool price index and production costs. At the highest level the rate will be 20% if the FishPool price exceeds the equivalent of NOK 119 per kilo (£9.29) which is the price Norwegian buyers were paying for the best quality fish last week. The Bakkafrost statement said: “The proposal is based on the same principles as the previous government’s proposal where different tax rates are to be used, depending ...