Mowi CEO Ivan Vindheim, pictured at the North Atlantic Seafood Forum in March 2024.
Photo: NASF 2024.
Mowi has dropped its legal challenge to Norway's ground rent tax on aquaculture - the so-called salmon tax - at least for the time being, until the final details of the tax are confirmed.
The Norwegian salmon farming giant took its case over the tax to court in April, where CEO Ivan Vindheim made a personal appearance to present Mowi's position before the judges at Hordaland district court.
The ground rent tax includes a deduction of NOK 70 million (EUR 5.96m / USD 6.37m), after which any surplus income made by salmon farmers is subject to tax.
Vindheim stated in court that this gives Mowi a "competitive disadvantage compared to the small farmers", with the company pushing for the deduction to be eliminated from the tax rules, claiming that it breaches European Economic Area (EEA) rules.
However, after this preliminary hearing in April, Mowi's case was dismissed, with judges ruling that the court could not hear such a case until the final tax authority decision, expected to be made public in late 2024 or early 2025.
Mowi was allowed one month in which to lodge an appeal, but although the company was reportedly weighing its options in the interim, it has decided not to take this forward.
"The state has won with the fact that the Storting's legislative decision on ground rent tax on farming cannot be tested on a general basis, which Mowi now accepts. It is an important clarification of principle," Norway government lawyer Fredrik Sejersted told Norwegian business news outlet E24.
However, Mowi's decision does not prevent it mounting another legal challenge in future. In April, the court indicated Mowi could be successful in having the case heard if it tries again after the tax settlement decision has been made.
According to E24, Mowi’s Communications Director Ola Helge Hjetland stated in a text message to the news outlet that Mowi's decision not to appeal now had no bearing on potential future legal action, since they would have to wait for the tax settlement decision no matter what. "This changes nothing," Hjetland wrote.
