With reference to the press release from Bakkafrost on
Today, the Faroese Government has officially presented to the
- Changing the number of applicable tax rates from 3 to 5
- Increasing the salmon price thresholds that determine when each tax rate is applicable
- Linking the salmon price threshold to the average production cost for the Faroese salmon industry, which will be assessed annually.
Overview of the changes:
Current Revenue Tax | Proposed Revenue Tax | ||
Applicable tax rate | Applicable when avg. monthly salmon spot price is | Applicable when avg. monthly salmon spot price is | |
Higher than... | ..and less than | ||
0.5% |
Less than | Production cost* | |
2.5% | Production cost* |
Production cost* + | |
5.0% |
Production cost* + |
Production cost* + | |
7.5% | Production cost* + |
Production cost* + | |
10.0% | Production cost* + |
* The thresholds are based on the average annual production cost for the Faroese salmon industry. For 2023, an average production cost of
For 2023, the proposed change means that the revenue tax rates would be:
- 0.5% if the salmon spot price is less than
39.15 DKK /kg (approx.55 NOK /kg) -
2.5% if the salmon spot price is between 39.15 and
44.15 DKK /kg (approx.55-62 NOK /kg)
-
5% if the salmon price is between 44.15 and
54.15 DKK /kg (approx.62-76 NOK /kg) -
7.5% if the salmon price is between 54.15 and
69.15 DKK /kg (approx.76-97 NOK /kg) -
10% if the salmon price is above
69.15 DKK /kg (approx.97 NOK /kg)
The proposed changes, outlined in this press release, have not yet been passed by the
Contacts:
Regin Jacobsen , CEO ofP/F Bakkafrost : +298 23 50 01 (mobile)-
Høgni
Dahl Jakobsen , CFO ofP/F Bakkafrost : +298 23 50 60 (mobile)
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
https://news.cision.com/bakkafrost/r/update-on-revenue-tax-on-salmon-farming-in-the-faroe-islands,c3640725
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