More jobs and more value creation are better than special taxes
In a new report, Nofima researchers discuss how various forms of taxation on resource interest in the fisheries industry would affect the competitive situation of the onshore-based fishing industry.
The fishing industry in Norway is essential for increasing values from Norwegian fishing resources, but access to raw materials is a critical factor. The Eidesen Committee proposed widespread changes in the quota system, and also put forward a proposal to increase taxation of the fishing fleet.
“There is no resource interest in the fishing industry and the Norwegian Seafood Federation believes the main objective must be to create more jobs and greater values from the Norwegian raw material. Increasing taxation is not the answer to the challenges that the industry is facing – and it won’t create greater competitiveness internationally,” says Sverre Johansen, Industry Director at the Norwegian Seafood Federation.
Nofima has produced a report that looks at the question of resource interest in the fisheries industry and how different tax proposals could affect the industry.
“Establishing a regime for resource interest taxation represents a challenge to the entire value chain through the introduction of an extra tax cost. The exact form of this taxation will decide which link of the value chain actually pays the tax and which link will benefit from the resource interest. For example, there is much to indicate that the balance of power in the value chain could mean that the tax that is intended for one link of the chain is actually charged to a completely different link,” says Research Director Bent Dreyer.
The report also points out how the different tax models could be adapted to even out the balance of market power between the fishing fleet and the fishing industry.
“A resource interest tax could weaken the fishing industry’s market position even further in the primary market. However, it is possible to adapt the tax models so that they do more to strengthen the fishing industry’s competitive position, and this is something that should be considered carefully,” says Bent Dreyer.
Economy and profitability