The Norwegian government has presented a proposal to temporarily lower taxes on gasoline and diesel. The government writes this in a press release.
Specifically, the government will completely eliminate the road tax on fuel. This means that the tax on gasoline will be reduced by 4.41 Norwegian kroner per liter, while the tax on diesel will be reduced by 2.85 Norwegian kroner per liter.
The temporary reduction in taxes is expected to reduce state revenue by 3.3 billion Norwegian kroner. This corresponds to approximately 2.2 billion Danish kroner. In addition, the Norwegian government will also eliminate the CO2 tax on mineral oil for fishing in both distant and near waters. The changes will apply from 1 April to 1 September.
After this, the government plans for the taxes to return to the current level.
The government came into a minority
The government has presented the proposal after a majority in the Norwegian parliament, excluding the government, decided to lower taxes on fuel. This has forced the government to implement the changes against its will.
- We do not want this approach and do not believe it is wise to rush through such large amounts, said Finance Minister Jens Stoltenberg of the Labour Party (Ap) to VG after the decision in the Storting last week.
The decision was made by the Centre Party, the Conservative Party, the Christian Democratic Party (KrF) and the Progress Party (Frp) without the Labour Party, which is in government.
At a press conference on Monday, where Stoltenberg presented the tax cuts, he said, according to VG, that they will benefit consumers. When asked whether he believes it is irresponsible, he replies:
- It is the Storting that decides, and we follow up on it. But we must then present our proposal for how it should be done in a responsible way when we present the revised state budget in a few weeks, Stoltenberg says according to VG.
Stoltenberg has previously warned that the measure could put pressure on the economy and contribute to rising interest rates. According to VG's information, the price of the total tax relief is 6.7 billion Norwegian kroner.
The decision to lower taxes on fuel comes after the conflict in the Middle East has sent oil prices soaring. This has caused fuel prices all over the world to rise.
/ritzau/
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