Norway's Salmon Tax - A Leap towards Sustainability?

Interesting news from Norway, where the government are pressing forward with a so-called salmon tax. The move is in response to the large profits made by this important sector of industry, and the massive profit margins involved.

Rather like the sovereign wealth fund designed to capture the profits from the sector for the local community. In addition, it might potentially have the capacity to make the industry sustainable in the long-run.

Norway is the dominant player in the global farmed salmon industry, accounting for approximately 50% of annual global output, and is Europe’s largest supplier.

Naturally, the idea has received some kick-back from leading salmon farm businesses.

Read (Financial Times) World’s top salmon producer blasts Norwegian fish tax plans

The salmon industry is very important to the Norwegian economy. It is the country's largest food export, and it employs over 30,000 people. In 2021, the salmon industry generated NOK 81.4 billion in revenue, which was 12% higher than the previous year. The industry also contributed NOK 13.1 billion to the Norwegian government's tax revenue.

The salmon industry is a major driver of economic growth in Norway. It is estimated that for every NOK 1 that is spent in the salmon industry, an additional NOK 2.7 is generated in other sectors of the economy. The industry also has a positive impact on Norway's balance of trade, as it exports more salmon than it imports.