Norway to remove fuel tax to reduce petrol and diesel prices
The Norwegian government has announced that it plans to remove the fuel tax from the New Year, which will lead to cheaper petrol and diesel prices at pumps throughout the country.
In total, fuel taxes on road traffic for most people will be reduced by 600 million kroner. When the tax reduction on mineral oil is also factored in, the total reduction will amount to approximately 2.2 billion kroner after the increase in CO2 taxes is taken into account, the news bureau NTB reports.
"Fuel prices have increased sharply through 2022. Many households and businesses experience high fuel prices as a major challenge. Reduced fuel taxes help make everyday life a little easier for households and businesses, and will mean a lot - especially for the construction industry," Finance Minister Trygve Slagsvold Vedum (SP) said.
The Norwegian parliament (Storting) has adopted the government's proposal to remove the tax on mineral oil from January 1.
Net reduction of 600 million kroner
The road tax on fuel is reduced by a total of 1.88 billion kroner, while a higher CO2 tax on road traffic is set to increase the state's revenues by 1.26 billion kroner.
The net reduction will thus be in excess of 600 million kroner, the government stated.
"The government announced in the Hurdal platform that it would 'reduce taxes that affect most people, such as the electricity tax and fuel tax.' The reduction in fuel taxes in the 2023 budget is a direct follow-up to the government's tax policy," Vedum explained.
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In total, fuel taxes on road traffic for most people will be reduced by 600 million kroner. When the tax reduction on mineral oil is also factored in, the total reduction will amount to approximately 2.2 billion kroner after the increase in CO2 taxes is taken into account, the news bureau NTB reports.
"Fuel prices have increased sharply through 2022. Many households and businesses experience high fuel prices as a major challenge. Reduced fuel taxes help make everyday life a little easier for households and businesses, and will mean a lot - especially for the construction industry," Finance Minister Trygve Slagsvold Vedum (SP) said.
The Norwegian parliament (Storting) has adopted the government's proposal to remove the tax on mineral oil from January 1.
Net reduction of 600 million kroner
The road tax on fuel is reduced by a total of 1.88 billion kroner, while a higher CO2 tax on road traffic is set to increase the state's revenues by 1.26 billion kroner.
The net reduction will thus be in excess of 600 million kroner, the government stated.
"The government announced in the Hurdal platform that it would 'reduce taxes that affect most people, such as the electricity tax and fuel tax.' The reduction in fuel taxes in the 2023 budget is a direct follow-up to the government's tax policy," Vedum explained.
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