Lerøy Seafood Group ASA: Proposal on resource tax

The Norwegian Government this morning, 28 September 2022, issued a press release available atwww.regjeringen.no  whereby it is proposed to introduce a resource tax on salmon and trout farming of 40% for volumes above 4-5,000 tonnes. The tax is proposed with effect for 2023 and must be approved by the Norwegian parliament "Storting". According to the press release, the proposal if approved, will give a marginal tax rate on farming of salmon and trout of 62%.The Board and management in LSG...

The Norwegian Government this morning, 28 September 2022, issued a press release available at www.regjeringen.no whereby it is proposed to introduce a resource tax on salmon and trout farming of 40% for volumes above 4-5,000 tonnes. The tax is proposed with effect for 2023 and must be approved by the Norwegian parliament "Storting". According to the press release, the proposal if approved, will give a marginal tax rate on farming of salmon and trout of 62%.

The Board and management in LSG are in the process of assessing the proposal but do not have a complete overview yet. However, the proposal is undoubtedly hostile to the industry. If approved, it will have a strong negative impact on the entire industry, unless decision makers at the “Storting” and people along coastal Norway manage to stop the proposal following the ongoing consultation period.