It was reported on 11 October 2012 that Norway has unveiled its 2013 budget ahead of next year’s elections, including less fiscal stimulus than previously expected.
As part of its 2013 budget, Norway is set to double its carbon taxes on oil firms in order to help finance NOK2.3bn in additional aid to protect tropical forests in developing nations. Another similar tax hike on the fishing industry’s carbon emissions is also proposed.
Among other key tax measures, there will be a substantial increase in the tax-free threshold applicable to the wealth tax, and an increase in the basic tax-free allowance for wage taxation purposes.
The structural budget deficit, i.e. before oil revenues are taken into account, is expected to reach NOK125.3bn (USD22bn), up from NOK116.2bn this year. This is equivalent to 5.3% of gross domestic product (GDP). However, Norway will run a NOK380bn surplus next year once oil revenues are counted.
