Postponement of the air passenger tax costs 250 million kroner

passenger tax costs 250 million Finance Minister Siv Jensen .Photo: Terje Bendiksby / NTB scanpix

The Ministry of Finance expects the implementation of the air passenger tax being deferred for two months until June 1 will lead to a loss in revenue of  250 million NOK.

The Finance Minister Siv Jensen (FRP) states ths in a written response to Labour’s fiscal spokeswoman Marianne Marthinsen. Marthinsen asks about the expected revenue losses – ie loss of earnings – and how the government plans to cover the loss.
“When taking into account the compensations, the postponement of the implementation of the air passenger tax by two months to June 1, is believed to lead to a loss of revenue in 2016 of about 250 million kroner entered and incurred in relation to the consolidated budget for 2016,” writes Jensen.
According to the budget agreement in parliament, the tax was to be introduced on 1 April, but the EFTA Surveillance Authority has decided to evaluate the scheme’s legality. Jensen points out that ESA has indicated that they will deal with the matter quickly, and beacuse of this the Ministry of Finance decided to postpone the tax until 1. June.
Several business organizations and other parties are critical of the air passenger duty and believe it should be scrapped. The government had calculated that the tax would give 1 billion in revenue in 2016 on its introduction on 1 April.


Source: NTB scanpix / Norway Today