KPMG Law warns against tax proposal: “There is no super profit in Norwegian wind power”

After having compared wind power taxes in a number of countries, KPMG Law warns against an economic rent tax on Norwegian wind power, writes E24.no on 3 November.

At the end of September, the Sanderud Panel recommended that Norway should consider introducing an economic rent tax on wind power. However, KPMG Law thinks that there is no reason to introduce special taxes for the wind power industry. Per Daniel Nyberg, a lawyer and partner with the KPMG Law Advokatfirma AS law firm, told E24 that: “No other country is doing it. In fact, it is rather going in the opposite direction”.

KPMG Law also says that it fears investor flight. “It is difficult to imagine that much will be invested in wind power on land in Norway, if economic rent tax is introduced”, says Trond Thorvaldsen, an Advisor and Senior Manager with KPMG. According to KPMG Law, foreign investors have spent many millions on Norwegian wind power in recent years, but these investors will stay away from Norway if it introduces special taxes not adopted by other countries, E24 writes.

In September, Ny Analyse, an economic research firm, prepared a tax report on behalf of Norsk Vind. This report calculates how the income of host municipalities for land based wind power will be affected if wind power development is scaled up. The report contains three tax proposals:

1. Introduction of tax on natural
2. Introduction of permit
3. Introduction of compulsory yield of power

KPMG does not provide advice to E24 regarding the natural resource tax, but says it would benefit the municipalities. “Introducing a natural resource tax could be a possible solution. In that case, it would favour the municipalities, and move money from the central government to them”, says Jan Erik Greni, an Associate and Senior Manager of KMPG Law, to E24.

Read the article at E24 here

Read the Ny Analyse tax report here

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