The new revenue tax for the Faroe Islands’ salmon farming industry proposed by the recently-elected government has been passed by parliament.
Effective from 1 August 2023, a total of nine different tax rates – ranging from 0.5% to 20% – can be applied, dependent on the difference between the monthly FishPool Index prices and the average production cost for the Faroese salmon industry.
Average production costs will be assessed twice a year.
Announced in September 2022, the government’s proposal was shared with the industry for hearing through to 16 March 2023.
The new tax doubles the 10% limit proposed by the previous (now opposition) government. The 20% rate will apply when the FishPool Index prices exceed the industry production cost by DKK 40 per kg.
2021’s average production cost of DKK 39.15 per kg was proposed as the baseline.
