In order to revitalize Norway’s seafood processing industry, Seafood Companies, a prominent industry organization, is calling on the government to eliminate the employer tax imposed on the sector. Currently, a substantial portion of Norway’s salmon undergoes processing in countries like Poland and Denmark, prompting concerns about the decline in domestic processing capabilities.
Robert H. Eriksson, the managing director of Seafood Companies, emphasizes the diminishing number of companies in the seafood industry, dropping from 688 in 1995 to approximately 350 today. Eriksson anticipates a positive response as he awaits the unveiling of the national budget later today.
Seafood Companies highlights the financial burden on salmon producers, who now face a 25% salmon tax in addition to a 22% corporation tax. The employer tax acts as a production fee on each kilogram of processed salmon, with an extra charge for those aiming to increase their output.
Eriksson notes a concerning trend in the decline of domestic processing, revealing that only 28% of fish for export is currently processed within Norway, down from 33% in 2010. Despite government rhetoric urging increased value creation from seafood within the country, the reality is a worsening situation year by year, resulting in more unprocessed fish being exported.
Eriksson argues that Norway’s status as a high-cost country is a significant challenge, particularly due to labour-related expenses, contributing to low profitability for many industrial companies. To enhance competitiveness and support the struggling industry, Seafood Companies urges the government to abolish the employer’s tax in the upcoming state budget.
Eriksson points out that the recent introduction of a temporary additional employer’s tax in the previous budget has further complicated the situation for businesses. He concludes by demanding the removal of this additional taxation in the next year’s state budget, describing it as an unreasonable Norwegian penalty tax for hiring people.
