Iceland’s Finance and Economic Affairs Minister has proposed a draft bill for public consultation on 15 October 2024, putting forward various taxes and duties on lodging, VAT, income, state treasury income, public tax collection, alcohol, tobacco, and support for innovative companies.
The consultation is set to conclude on 20 October 2024.
Lodging tax
The proposed amendments suggest cruise ships on international trips pay an ISK 2,500 per passenger infrastructure fee instead of a lodging tax. Domestic cruise ships will pay a lodging tax of ISK 400 per passenger for every 24 hours. The lodging tax will be increased to ISK 800 for hotel accommodations and related services and ISK 400 for camping areas. The lodging tax will not be included in the VAT base.
Support for innovative companies
The bill suggests lowering the support capital from ISK 1,100,000 to ISK 900,000. The incentive for small and medium-sized companies will remain at 35% of the eligible costs. A reduction from 25% to 15% is proposed for large companies.
Excise duties for nicotine/tobacco products
The bill proposes excise duties on nicotine products and e-cigarette liquids imported and locally produced in Iceland. The duties are ISK 30 per gram for nicotine products and ISK 60 per millilitre for both disposable and refilled e-cigarette liquids.
