Norway to increase income tax for oil and gas companies

MOSCOW, 6 Oct — PRIME. The Norwegian government has decided to increase taxes on the profits of oil and gas companies to stabilize the savings of the pension fund, the country’s finance ministry said.

It is noted that the measure will come into force in 2023. The tax-free rate of income will drop from 17.69 percent to 12.4 percent.

The Norwegian authorities have introduced temporary tax rules for the oil industry amid the COVID-19 pandemic and the subsequent fall in oil prices, the ministry explained. However, now the situation has changed and the cost of fuel has increased.

The increase in fees is expected to bring additional revenue to the budget in the amount of up to NOK 2 billion (approximately $200 million). The funds will be transferred to the Norwegian pension fund, which has suffered significant losses over the past six months.

Western countries have imposed unprecedented sanctions against Russia in connection with a special operation in Ukraine. Some of the restrictions affect, among other things, the energy sector. This led to the aggravation of the energy crisis in Europe, the region was faced with a shortage of fuel and rising prices for it.