Trygve Slagsvold Vedum (Sp) received harsh criticism from the Progress Party on Friday when it emerged that the increase in taxes and fees overall is now higher than they have been since Jens Stoltenberg led his first government.
But Vedum hits back and says most people get less tax pressure.
– We believe that those with the strongest backs should take the biggest load. Therefore, we believe that what we are doing now is right, says Vedum to NTB.
Most people do not get increased taxes
He refers to the tax cuts for the aquaculture industry and energy companies. They have been controversial. The salmon tax in particular has drawn harsh criticism from the government.
– It is fantastic that we have an aquaculture industry that can make large profits, but they must contribute more to the community. That is the direction we want in tax policy, says Vedum.
ECONOMY: Trygve Slagsvold Vedum (Sp) says the government has prioritized a number of measures to make costs lower for most people. Photo: Marte Christensen / TV 2
The Minister of Finance emphasizes that three out of four will receive lower or unchanged tax from 1 January.
For those who earn less than NOK 1 million, income tax will be reduced by around NOK 4.5 billion next year. Those with a higher income than that get tax increases of 3.6 billion.
A family with a total income of NOK 1 million and two children can get a total tax relief of around NOK 8,400 compared to 2021.
– Fair and reasonable
Vedum says it has been a tough budget harvest with a demanding backdrop. War in Europe, pandemic and galloping price growth have led to it.
– But the income tax must go down. It is important for the government. Even in a year where it was difficult to get the budget to increase, it was very important to us that those with a normal income should get lower taxes or keep the same tax pressure, says Vedum.
This is what the experts believe about the Norwegian economy in 2023
– But won’t tax on industries also affect ordinary people?
– The main piece is extra taxation on energy and aquaculture. I think people think that is reasonable. The consequences of the war mean that the costs in the state budget have increased greatly. We believe it is wrong that most people should take the extra bills, says Vedum.
One of the extra bills is the electricity subsidy scheme. Vedum says that this and other similar measures amount to just under 50 billion.
– I think it is right and reasonable that the power companies contribute more. We have had a long tradition that those who earn a lot from natural resources must contribute, he says.
Priorities
Vedum says that the government has also prioritized a number of other measures to make costs lower for most people. Nevertheless, both Ap and Sp fall sharply in the surveys.
– The most important thing is what you do. Over time, I think the realities dawn on people. There are many who have felt an unease about their finances, says Vedum.
He points out that this is the first budget the Ap-Sp government has had to deliver entirely by itself. And portends more of the same in the years to come.
– We have prioritized very clearly. Even with the large extra costs, we should be able to give people with normal incomes lower taxes, says Vedum.
Therefore, the use of oil money is reduced
Cut back on the use of oil money
– What would you say to people at home who are worried that increased tax pressure will hit their wallets?
– The big tax increase will come on the power companies. They have earned an enormous amount. People will notice that income tax does not get a higher pressure. People will notice that the commuter deduction and many deductions that are about helping working people have improved, says Vedum.
He says that the most important thing the government can do for most people’s wallets is to fight price increases. Therefore, he cannot support himself roughly from the oil fund.
– It is about the fact that the thing that causes the most problems for people is the rise in prices. That is why we are cutting the use of oil money. It would have been easier to just use. But that is not right, says Vedum.
