The tax rates will be cut, says Prime Minister Jens Stoltenberg. He is not pleased with the way the tax system that he has been running for almost eight consecutive years.
The government opens up for "substantial" changes in the Norwegian tax system. The increasingly open economy is pushing for Norwegian taxes to be lowered.
The basis for the Norwegian tax system has remained unchanged since 1992. But what was a good system then is not such a good a system now, says Stoltenberg. "The world has changed, and it is changing dramatically because of globalization and lower tax rates in our neighbouring countries."
The Prime Minister promises a tax reform, which within 2-3 years will include substantial changes in the current system, he explained at a conference hosted by the Labor Party on Tuesday.
Whereas Norway's corporate tax rate is at 28 percent, the rates are down towards 20 percent in other countries. On May 5, Stoltenberg proposed that the tax should be lowered to 27 percent.
The tax on profits is also the tax system's most important rate. It is the same for all tax payers and for all types of income, including both private individuals and businesses. Lowering the rate may cause several chain reactions.
People who hope to pay less taxes will be disappointed, however. Although there will be a tax reform, Stoltenberg explains that the taxes will be re-organized, but will not result in a reduction of the government's total tax revenue.
(Aftenposten)
