OSLO (Reuters) – Norway’s centre-left government said on Thursday it planned to raise taxes on the country’s oil and gas industry by 2 billion Norwegian crowns ($191 million) in 2023 by partly reversing an incentive package introduced during the coronavirus pandemic.
The adjustment to the temporary rules follows a surge in oil and gas prices, the government said.
“When aggregated over the years in which the temporary rules will apply, central government revenues are estimated to increase by 11 billion crowns,” Finance Minister Trygve Slagsvold Vedum said in a statement.
Norway, Europe’s number one gas supplier and a major global crude producer, pumps around 4 million barrels of oil equivalent per day, ensuring big financial gains from the spike in energy prices.
The proposal reduces the so-called uplift rate, a special tax deduction, to 12.4% from 17.69%, the finance ministry said.
“With the government’s proposal, all profitable investments before special tax will also remain profitable after tax,” said Vedum of the rural-oriented Centre Party.
($1 = 10.4670 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Gwladys Fouche)
