Here are the most important changes in the government’s proposal for the state budget for 2021.
The government will spend NOK 313.4 billion on the state budget for 2021, which is expected to amount to 3 per cent of the oil fund at the beginning of the year, writes NRK.
The government has announced that it will seek support from the Progress Party (FRP) to secure a majority for the budget in the Storting.
Here are the most important changes for households
More expensive alcohol and wine: Alcohol taxes increase, spirits and alcohol increase by at least 3.4 percent.
More expensive snus and smoke: Snus price increases by 3.7 percent in and cigarettes by 3.4 percent.
More expensive to own an electric car: An annual motor insurance fee is also introduced for electric cars, but at a lower rate than for other types of cars.
More expensive to fly: The government proposes to increase the air passenger tax by 3.3 per cent for flights in Europe. For each passenger, this means that the airlines must pay a fee of NOK 79.
For travel out of Europe, the increase is greater. The government proposes 3.4 percent to 211 kroner per passenger for those flights.
More expensive electricity: The general tax rate on electricity increases by 3.5 percent to 16.69 øre per kilowatt hour.
Increased maximum amount in daycare: Maximum payment for children in daycare increases from NOK 3,135 in the month this year to NOK 3,230 per month from 1 January 2021. The maximum annual payment in daycare is thus NOK 35,530.
Must pay more to use health services: The government proposes that the deductible fee for the health service increases from NOK 2,460 to NOK 3,183.
Possible to earn more tax-free: The exemption card limit is increased from NOK 55,000 to NOK 60,000.
Property tax cuts : The maximum property tax rate for residential and holiday property will be reduced from 5 to 4 per thousand. This means that the municipalities will have a lower ceiling for how much they can collect in municipal property tax, and will affect the municipalities’ ability to collect income. Can get more expensive gifts from the employer: The regulations for fringe benefits (benefits in kind) are simplified, and the government proposes that the employer can give gifts to employees for up to 5,000 kroner without having to pay tax on it. Today, this limit is 2,000 kroner.
The total limit for tax-free gifts and staff discounts is increased from 10,000 to 13,000 kroner.
Increases child benefit by NOK 300: The government proposes to increase child benefit by NOK 300 per month for children up to the age of 6, corresponding to NOK 3,600 per year. The change will take effect from 1 September 2021.
Cheaper sugar-free soft drinks: The government proposes to reduce the tax on soft drinks by 27.6 per cent from 1 July next year. This applies to beverages that either have a low sugar content or only added artificial sweeteners. The beverages with the highest sugar content receive an unchanged tax. Products that contain only natural sugar will still be exempt from tax.
Now there will be VAT on alternative treatment and plastic surgery: Alternative treatment is currently exempt from VAT. The government is now proposing to remove the exemption, so that alternative practitioners, such as masseurs, must tax the services. There will still be exceptions for alternative treatment provided by healthcare professionals.