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principal / Norway drops FTT and changes excise duties as part of Budget law 2017
Norway has recently decided to cancel plans on the implementation of Financial Transaction Taxes (FTT). A new plan on the introduction of this tax has been discussed for years in the European Union with several countries backing the proposal but not reaching a final agreement on the implementation conditions. Norway is not an EU Member state, but the FTT was being considered as additional tax revenue from the financial services industry. However, following the Budget law debate for 2017, the FTT plans will be replaced by a new payroll tax on this industry.
In addition to the above, Norway has announced changes on the excise duty rates. Annual motor vehicle tax for passenger tax and the horse power element in the car registration tax will both be reduced. However, there is an increase of rates announced on the road usage tax and on taxes on greenhouse gas emissions and fuel.
The above changes have been announced as part of the 2017 Budget Law in Norway and will become effective on 1 January 2017.