November 27, 2022

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Organizations will defer land rent tax on wind energy

Organizations will defer land rent tax on wind energy

Recently, the government has advocated that industries that make particularly large profits from shared natural resources should pay a so-called land rent tax.

According to the plan, the tax will cover both fish farming and terrestrial wind energy. But now industry organization Energi Norge and Norwea are calling for the tax to be postponed and changed, so as not to slow down investments in wind energy.

– Not completely designed

The government has proposed that the rent of land, the additional gain from access to natural resources, be taxed at a rate of 40 percent for onshore wind power.

On the Finance Ministry’s website, the government wrote that it plans to submit the proposal for consultation during the year, and that it will be submitted in 2023.

Norwea leader Ã…slaug Haga does not believe it is acceptable to adopt the state budget on the basis of a tax that has not been fully investigated.

Many important tax-related details are not known, have not been investigated and counseling has not taken place. This is not how the country could be governed, Haga says in an email to NTB.

– Slows down the green shift

Norway’s Energy Director Knut Kropelin believes the tax will slow the green transition if it is introduced as planned.

– This is hardly the intention. Hopefully, the European Parliament will take time to find the right design, so that both the need for income for the mutual fund and more renewable energy are taken care of, he says in the email from Energi Norge and Norwea.

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in e-mail The organizations have sent the Finance Committee, they are not against the land rent tax for the onshore winds, but they believe that it should be regulated differently so as not to hit some projects disproportionately.

The way the government proposes to arrange the tax, those who believe it will slow down investments in wind energy. Ultimately, they believe, it could lead to bankruptcies for existing facilities.