The government removes the controversial employer tax from New Year – NRK Norway – Overview of news from different parts of the country

Already this winter, the government announced that the scheme would be scrapped sometime next year. Finance Minister Trygve Slagsvold Vedum said in February that the tax would be removed before the election next year, but not later in the year.

But now it is clear.

– We introduced an intermediate employer’s tax as part of a responsible state budget at a very late stage. It was intermediate, and we started winding it down in this year’s budget. It will be completely discontinued from 1 January 2025, says Prime Minister Jonas Gahr Støre (Ap) to Dagens Næringsliv.

Great resistance

The tax was introduced in the state budget for 2023, and was supposed to generate revenue for the state of several billion kroner.

Norwegian companies had to pay additional employer’s tax for high wages. First, they had to pay an extra 5 percent on income over NOK 750,000.

In this year’s budget, the limit was adjusted to NOK 850,000.

The move met with great opposition from LO, the business community and NHO.

Managing director Ole Erik Almlid of NHO is happy that the tax will be removed completely.

– This has been an important matter for NHO’s members, and we have had a clear expectation that the extra fee would be cut next year, he says to NTB.

SV will support the government

Budget partners SV have also been critical of the introduction of the additional tax. Fiscal policy spokesperson Kari Elisabeth Kaski tells NRK that they will support the government in removing the tax.

– It is a good decision by the government to propose removing the additional employer’s tax from next year.

She says this was a small, necessary fee.

– This is an unfortunate tax on labour, which SV has been against. We will therefore secure a majority for it, at the same time as there is a need for other tax measures that provide more redistribution, says Kaski.

Fiscal policy spokesperson in Høgre, Tina Bru, is also happy that the tax will be scrapped.

– I have never understood why this extra bill was necessary, but it is very good that the government is removing it completely from next year.