Norway budget changes: ‘A prudent fiscal policy’ with tax amendments / News / The Foreigner

Norway budget changes: ‘A prudent fiscal policy’ with tax amendments. After some 3.5 weeks in power, the fresher center-right coalition government presented their amendments to ex-Prime Minister Jens Stoltenberg government’s State Budget proposal for 2014, Friday. In their opening statement, elected officials said “The Government will promote growth of the Norwegian economy through targeted tax reductions, high priority on infrastructure and emphasis on other measures to stimulate productivity and competitiveness.” These are some of the changes that were made:

norwaybudget2014, norwaygovernment



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Norway budget changes: ‘A prudent fiscal policy’ with tax amendments

Published on Friday, 8th November, 2013 at 15:18 under the news category, by Linn Schjerven and Michael Sandelson   .

After some 3.5 weeks in power, the fresher center-right coalition government presented their amendments to ex-Prime Minister Jens Stoltenberg government’s State Budget proposal for 2014, Friday.

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Leather travel case
Photo: zibber/Shutterstock Images


In their opening statement, elected officials said “The Government will promote growth of the Norwegian economy through targeted tax reductions, high priority on infrastructure and emphasis on other measures to stimulate productivity and competitiveness.”

These are some of the changes that were made:

Income tax:

Proposal: Minor adjustments. Most rates increase only in line with wage increases (3.5 percent).  Prioritized tax concessions to those with a low income by increasing the basic allowance from 40 to 42 percent.

Change: Personal tax cut from 28 percent to 27 percent. This is the tax that every employee pays on ordinary income, which is the gross income after every deduction.

Wealth tax:

Proposal: The Stoltenberg government’s proposal for deductible in income tax of NOK 1 million per person maintains.

Change: The wealth tax is cut by 0.1 percentage points to 1.0 percent. This means that a person with full wealth position will ‘save’ NOK 1,000 in taxes for every million in net income.

Inheritance tax:

Proposal: For inheritance over NOK 1 million, a 10 percent tax on inheritance and gifts to children and parents. This would be raised to 15 percent when the inheritance occurred beyond the immediate family and others.

Change: The inheritance is removed, which means that children will no longer have to pay 10 percent inheritance tax for amounts excessing NOK one million.

Study aid:

Proposal: From 2014, students were to get study aid for eleven months, which would be an additional one-month from the current ten.

Change: The new Coalition government has rejected the proposal, which means that students will still only get financial support for ten months. The effect of an extra month of study aid is an estimate of NOK 11,000.

Tobacco and alcohol products:

Proposal: ‘Snus’ tax would be increased by 2.1 percent and alcohol tax would be increased by 1.6 percent.

Change: Increase in taxes for both tobacco and alcohol, as proposed by the previous government. The new government maintains the same tax increase for tobacco products, however there will a greater increase in tax for specific alcoholic beverages.

Trade Unions:

Proposal: To increase the deduction of union dues by 6.5 percent from NOK 3,850 to NOK 4,000.

Change: The increase is removed and the deduction remains at NOK 3,850.

More information from the Ministry of Finance can be found here (external link).



Published on Friday, 8th November, 2013 at 15:18 under the news category, by Linn Schjerven and Michael Sandelson   .

This post has the following tags: norwaybudget2014, norwaygovernment.





  
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