Norway Raises Oil Taxes in Bid to Ease Cost Pressures on Economy
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Norway announced it will raise taxes on oil companies by about 3 billion kroner ($520 million) a year to damp cost pressures and overheating in western Europe’s biggest oil producer.
The government will limit four-year exemptions on so-called free cash flow to 22 percent from 30 percent and raise the special petroleum tax to 51 percent from 50 percent, keeping a top tax rate of 78 percent, according to a presentation in Oslo yesterday. The increase comes as it also lowered overall corporate taxes to 27 percent from 28 percent, which will be financed by closing loopholes and corporate interest rate deductions.