CONTROVERSIAL EMPLOYER TAX TO BE REMOVED AT YEAR END

The controversial extraordinary employer tax, introduced in 2023, will be removed on January 1 next year, reports Dagens Næringsliv. The government announced this winter that the scheme would be scrapped during the next year. Prime Minister Jonas Gahr Støre says that the tax was temporary and will be completely abolished from January 1, 2025. Finance Minister Trygve Slagsvold Vedum stated in February that the tax would be removed before the 2025 election, without specifying exactly when.

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Much opposition
Since January last year, Norwegian companies have had to pay extra employer tax for high salaries. This move by the government has met with much opposition, both from the business community and NHO, but also from LO and budget partner SV.
— Our assessment was that we had to spend money on people who had problems with high prices, such as families with children and groups who were struggling financially, on top of the electricity support that everyone benefited from, says Vedum to DN.

Support for Ukraine was one of the reasons for introducing the temporary tax. Initially, incomes over 750,000 kroner were subject to an extra tax of 5 percent. In this year’s budget, it was slightly adjusted downwards by increasing the threshold from 750,000 to 850,000 kroner.

SV’s financial policy spokesperson, Kari Elisabeth Kaski, expresses support for the government’s proposal to abolish the extra employer tax from next year, and describes this as a good decision. She states that SV has opposed this tax because it negatively affects labor. Furthermore, Kaski points out that the party wants to replace this tax with other forms of taxation that can contribute to a greater redistribution of resources in society. SV aims to create a majority to implement these changes in the tax system.

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