Norway Budget 2013: What it means for you / News / The Foreigner

Norway Budget 2013: What it means for you. The government released its annual budget proposal today with price increases on several popular items. In line with previously farmer hammered-through Centre Party (Sp) toll protection, it is expected duties on imports of certain cuts of beef will rise by about 344 percent. There will also be a toll increase of 277 percent on solid and semi-solid cheeses. This will apply especially those that compete with Norwegian brands Jarlsberg and Norvegia.

norwaybudget2013, taxnorway



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Norway Budget 2013: What it means for you

Published on Monday, 8th October, 2012 at 15:10 under the news category, by Michael Sandelson and Lyndsey Smith      .
Last Updated on 10th October 2012 at 17:07.

The government released its annual budget proposal today with price increases on several popular items.

Leather travel case
Leather travel case
Photo: zibber/Shutterstock Images


In line with previously farmer hammered-through Centre Party (Sp) toll protection, it is expected duties on imports of certain cuts of beef will rise by about 344 percent.

There will also be a toll increase of 277 percent on solid and semi-solid cheeses. This will apply especially those that compete with Norwegian brands Jarlsberg and Norvegia.

If these prices are hard to swallow, consumers will have to pay 7.4 percent more for fizzy drinks, squashes, and flavoured water.

Perhaps no surprise for alcoholic-loving people, beer up to 4.7 alc/vol will be dearer by another 1.9 percent.

Under the new draft proposal, foodstuffs containing sugar, including chocolate, face a 1.9 percent rise too.

Cigarettes and snuff (‘snus’) will be subject to tax rises of 1.7 percent and 2.2 percent, respectively.

The government also was environmentally minded in today’s proposal. New vehicles’ one-off registration fee – which includes weight, and CO2 (carbon dioxide) and NOx (nitrogen oxide) outputs – will be subject to change. 

Motorists driving vehicles that have bigger engines but pollute less will stand to benefit, but diesel-powered cars will be more expensive due to NOx output increases. 

Annual road and weight-based taxes will rise slightly, should the proposal go through. The news is slightly better for used vehicle buyers, who will have to pay 12 percent less for the re-registration fee. 

Scrappage fees paid to those waving goodbye to their old vehicles will rise from NOK 2,000 to NOK 2,500. 

There are also changes for private and commercial property owners, with expected market value-based tax on second properties rising from 40 to 50 percent.

This will mean a rise in net wealth tax, though the lowest basic allowance will rise from NOK 120 thousand to NOK 870 thousand. Married couples’ joint allowance will be NOK 1.74 million.

The rise will also apply to commercial property.

In brief, thresholds for paying surtax on income will be raised by 4 percent to NOK 509.6 thousand for those in class 1, and NOK 828.3 thousand for class 2 wage-earners.

Basic personal allowances for class 1 and 2 individuals are NOK 47.15 thousand and NOK 94.3 thousand, respectively.

Proposed basic wage income allowance limits are between NOK 4 thousand and NOK 81.3 thousand.

According to the Ministry of Finance, it is expected that the Norwegian economy will continue to grow over the next year with a prediction of 3.7 percent for 2012 and 2.9 percent in 2013.

Unemployment is expected to remain low at just over 3 percent.

The fiscal policy for 2013 includes an estimated underlying expenditure growth of 2.4 percent, with the net cash flow from petroleum activities estimated to be NOK 373 billion. 

The deficit from non-oil fiscal budget is set at NOK 123.7 billion.

Monetary policy shall, over the short and medium term, balance inflation against the outlook for employment and production.

By the end of 2013 the government pension fund is estimated to be valued at NOK 4425 billion, with NOK 4280 in the Government Pension Fund Global (GPFG). 

“Despite the challenging global economic environment, the Norwegian economy continues to perform well, and capacity utilisation is now higher than foreseen at the presentation of the Revised National Budget last May," Minister of Finance Sigbjørn Johnsen says. "Low interest rates, high income growth and high oil prices have fuelled the economy."

For a fuller list of proposed changes click here (external link to Ministry of Finance).




Published on Monday, 8th October, 2012 at 15:10 under the news category, by Michael Sandelson and Lyndsey Smith      .
Last updated on 10th October 2012 at 17:07.

This post has the following tags: norwaybudget2013, taxnorway.


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