Faroes government moots tax hike for salmon farmers

Published Mar 10, 2023

Tridge summary

The Faroe Islands' new Social Democrat-led government has proposed a significant increase in the salmon ground rent tax, upwardly doubling the rate to 20% for the highest earners. This proposal, which is now under industry consultation before being voted on, introduces a total of nine tax rates that range from 0.5% to 20%, with the rate increasing as the FishPool price index and production costs rise. The tax rates are calculated based on the FishPool price index and the industry's production cost, with the highest rate of 20% applied when the FishPool price exceeds NOK 119 per kilo. The Faroese parliament is set to vote on this proposal, although the larger salmon farming industry is likely to express opposition to the changes.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 ...

Source: Fishfarmermagazine