"They continue to treat the country’s second-largest export industry as if it doesn’t exist"

The Norwegian government’s newly proposed 2025 state budget has drawn heavy criticism from the seafood industry, with leaders claiming it perpetuates harmful tax policies that threaten the sector’s financial health and competitiveness.

Robert H. Eriksson, CEO of Sjømatbedriftene (Seafood Companies of Norway), said he was "very disappointed" that the budget fails to address industry-specific taxes that, he argues, place an undue burden on the seafood and aquaculture sector.

“The reality is that the tax contribution from the seafood industry is equivalent to funding all 24-hour nursing home placements across the country. The industry is the largest and most important food producer and is also essential to ensuring national food security. We are Norway’s largest and most important rural industry. It is therefore very disappointing that Finance Minister Vedum did not mention the industry’s significance with a single word. They continue to treat the country’s second-largest export industry as if it doesn’t exist,” Eriksson said in a media release.

The Norwegian aquaculture sector faces unique tax challenges, Eriksson argues. From 2018 to 2024, the industry has incurred over 20 billion NOK in special taxes, including fees for production, auctions for growth permits, and a resource rent tax.

This is in addition to standard corporate, wealth, and dividend taxes that all businesses pay. A recent report by KPMG reveals that Norwegian fish farmers face an average tax rate of 47%, significantly higher than their international counterparts, whose rates range between 21.2% and 24.8%.

"We are strong opponents of the resource rent tax on aquaculture. But as long as it exists, it should be used to reduce other, more harmful taxes – primarily those on wages, capital, and ownership. Instead, today’s government has used the funds to increase public spending. We have reached a situation where private ownership is being bled dry. I have no words; it’s just sad,” Eriksson said.

As the Storting (Norwegian Parliament) prepares to review the proposed budget, Eriksson and Sjømatbedriftene are advocating for comprehensive tax reform. They argue that reducing taxes on labour, as recommended by the Norwegian Tax Committee, is essential for economic growth. While the government’s decision to eliminate an additional employer contribution tax is a step forward, Eriksson insists that more needs to be done to strengthen the competitiveness of Norwegian-owned businesses.

Sjømatbedriftene has put forward a three-part proposal to address these concerns: significantly reducing wealth tax over the next three years, lowering the dividend tax to 30%, and eliminating VAT on seafood to level the playing field in the domestic market.

“As it stands today, the wealth tax should be significantly reduced and phased out entirely within three years. The dividend tax should be reduced to around 30%, and to create fair play in the market, VAT on seafood should be eliminated,” Eriksson said, arguing that this supports local ownership which strengthens community ties, compared to ownership by foreign investment funds.

"I believe there is immense value in having aquaculture companies like Arnøy Laks and Kvarøy Fiskeoppdrett owned by private owners with local community roots, rather than by a global investment fund managed from Manhattan,” Eriksson added.

Additionally, the industry association is seeking greater predictability for offshore aquaculture investment - an area the government has recently explored, with the announcement that the first offshore aquaculture licenses will be issued next year.

Eriksson criticized the lack of budget provisions to stimulate investment in this sector, calling for clear measures to create a stable environment for industry growth. He also underscored the importance of supporting new, homegrown aquaculture ventures, which he believes are poised to play a significant role in Norway’s future economy.

“We at the Seafood Companies are still disappointed that the government firmly says no to giving players who wish to build a new Norwegian industry the necessary measures to create predictability and promote investments in offshore aquaculture. I fully understand why players find the situation difficult, and that’s why we will again this year ask the Storting to introduce a resource rent tax on offshore aquaculture,” Eriksson said.

As the seafood industry continues to negotiate with lawmakers, Eriksson emphasized the need for a tax system that promotes job creation and rewards work, particularly as national insurance expenditure is expected to rise by NOK 20 billion. Sjømatbedriftene maintains that a fairer, more competitive tax structure is essential for the industry’s long-term health and for ensuring that the benefits of aquaculture continue to flow back into Norwegian communities.

The Storting will debate the proposed 2025 budget in the coming weeks, with key issues surrounding tax reform and economic support for the seafood sector likely to be some of the key topics under discussion.