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Higher taxes for many pensioners

One out of three pensioners will have to pay higher taxes, according to the proposed fiscal budget. For 10 per cent the taxes will remain unchanged. For the rest taxes will be lower.

Even so, the protests are many. - It is good that those with lower pensions will pay less in taxes next year, but it is not right to take from those with higher pensions, just like that, says Tore Henning Larsen, head of Seniorsaken, one of the largest organisation for pensioners.

Many of the protesters point to the fact that they have paid into the pension funds over a long working life, and planned their economic future based on rules which will now be changed overnight.  

The Government says it proposes changes to the tax system to provide elderly with better incentives to combine pension and work.

The current tax rules are tailored to the old pension system which was designed to people generally either working or receiving a full pension. The new pension system, which enters into force on 1 January 2011, is designed to encourage longer working careers and to facilitate a combination of pension and work, the Government states.

(NRK)


Written by Rolleiv Solholm

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