From Seafood Source, September 30:
Norwegian salmon-farming firms are rethinking planned investments following the introduction of a proposal by Norway’s government that would increase the tax rate they face by 40 percent.
On 28 September, the government of Norway proposed a new resource rent tax on aquaculture operators, with effect from 1 January, 2023, which will affect producers of salmon, trout, and rainbow trout.
Kverva, Norway-based SalMar and Lovund, Norway-based Nova Sea have already announced pullbacks from planned infrastructure upgrades, and Mowi, Lerøy Seafood, and Grieg Seafood are among companies that have released statements announcing a review of how the proposed tax could affect their operations and future investments.
SalMar “has chosen to use the opportunity to terminate the purchase” of 1,223 metric tons of maximum-allowed biomass it made earlier in 2022 as part of a relative share capacity adjustment available through Norway’s “traffic-light” permitting system. The price of the acquisitions was NOK 244.6 million (USD 22.5 million, EUR 23.1 million).
“This is due to the resource rent tax the government has now announced. The proposals involve, among other things, that the state acquires 40 percent of all cash flows in the company, and that the other owners' share is correspondingly reduced....
...MUCH MORE
Also at Seafood Source:
October 5, 2022Cermaq terminates purchase of farming permits in response to proposed tax hike
October 4, 2022
Cermaq, Nordlaks to suspend Norwegian investments if salmon resource tax approved
October 4, 2022
Tax proposal leads Lerøy, Mowi to terminate license-capacity purchases
