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5. Norway

Norway has a longstanding tradition of utilising green taxes as an economic instrument. Environmental taxes have been introduced to provide incentives to modify the behaviour of consumers and producers. Energy taxes, e.g. for fuels and motor vehicles, account for the largest share of all revenues related to environmentally related taxes, where they accounted for 70% in 2021.
In 2021, the Norwegian government launched a new climate strategy plan for the period 2021–2030. The objective of this strategy is a policy to reduce non-quota emissions with 45% before 2030 in the transport and agriculture sector.
For the period 2018–2021 there have been several changes related to vehicle registration and road use tax and carbon capture storage initiatives.
A noteworthy change during December 2020 is the Norwegian governments approve to subsidise a Carbon Capture Storage project named Northern Lights, with the purpose of finding suitable places in the North Sea to store carbon dioxide.
Electrical cars have throughout the years been exempt from the motor vehicle tax, but from 2021 they are obliged to pay a traffic insurance tax of NOK 5.85 (Eurocent 0.57) per day, as the annual excise tax on motor vehicles are replaced by this new traffic insurance tax. Substantial tax incentives to boost electric car sales have contributed to more than half of all new cars sold in Norway are electric.
The road use tax was extended in 2020 to further to include natural gas. Hydrogen used for transportation purposes is still fully exempt from the subjected tax. The NOX component of the registration tax has increased from NOK 72.06 (7.05 Euro) in 2018 to NOK 77.14 (7.55 Euro) in 2021. There has also been increases in the CO2 component within the taxation of motor vehicles, thus it is based on new European WLTP standards since 2020.
In 2019, the air passenger tax was temporary abolished, however it was introduced again during 2022.
Water use or water pollution is not taxed in Norway. Instead, consumers pay fees to the municipalities which covers the costs for water and sewage treatment. In 2021, the Norwegian government decided to introduce a tax on controlling fishing fleets with the purpose of adding finance towards controlling and supervising the fishery industry.
Taxes on electricity and transport consumption generates the largest amount of revenue for the Norwegian government. The total amount of green taxes accounted for 74.7 million NOK (7.3 million Euro) in 2021. The electricity consumption tax generated the highest single revenue with 11.3 million NOK (11.0 million Euro), followed by the diesel tax with 10.3 million NOK (10.0 million euro). See table 20 below for an overview of the ten highest revenue-generating taxes, fees, and charges.
Tax, fee or charge
NOK million
Electricity consumption tax 
11 299 (1106) 
Diesel tax 
10 288 (1007) 
Motor vehicle registration tax 
7 984 (782) 
Tax on CO2 emissions 
9 479 (928) 
Annual tax on motor vehicles paid by households 
7 994 (783) 
Tax on CO2 emissions in the petroleum sector 
5 301 (519) 
Imputed tax on emission permits 
6 305 (617) 
Environmental tax on disposable beverage packaging - plastic
2 655 (260) 
Annual motor vehicle tax paid by enterprises
1 686 (165) 
Petrol tax
4 498 (440) 
Total
67 489 (6607)
Table 20: Revenue from the ten highest revenue generating environmental taxes and fees in 2021, NOK (Euro)
Note: Selection based on the ten highest revenue-generating taxes, fees and charges. The total revenue is larger than the sum of these.
Source: Statistics Norway, 2022a

5.1 Energy, greenhouse gases and air pollution

The Norwegian government has been committed to the Paris Agreement since it was launched. The government has set a goal to reach a 55% reduction of greenhouse gas emissions before 2030 compared with the levels in 1990. Utilising economic instruments are of great importance to reach these targets. During 2021 a new climate strategy plan was launched for the period 2021–2030. A central element of this strategy is a policy to reduce non-quota emissions with 45% before 2030 in the transport and agriculture sector (Regjeringen, 2021a).

5.1.1 Electricity tax

An excise tax on electricity was introduced in 1951 with the aim to finance grid investments, hence it was earmarked until 1971 to support development of the country’s electrical supply (NCM, 2019). Since 2004, the fee structure has remained the same and the tax is mainly fiscally justified today, as well as contributing to limit energy consumption. The general rate applies to households, the service industry, public sector, and administration buildings in manufacturing. In 2018, the rate was 16.58 NOK öre (Eurocents 1.70) per kWh, increasing to 16.69 NOK öre (Eurocents 1.63) per kWh in 2021. 
In 2019, the Norwegian government decided that electric power supplied for datacentres who hosts cryptocurrency operations should not be covered by the reduced tax rate, as well as data centres who consume more than 0,5 MW (Government tax proposal, 2019). Between 2019 and 2018 the general rate was reduced with 4.5%. Due to the fact that the exchange rate of the Norwegian krona became weaker during 2020, it was decided to increase the reduced rate in 2021. See table 21 for an overview.
 
2018
2019
2020
2021
General rate
16.58 (1.70)
15.83 (1.57)
16.13 (1.53)
16.69 (1.63)
Reduced rate
0.48 (0.05)
0.50 (0.05)
0.505 (0.05)
0.532 (0.05)
Table 21: Electricity tax, 2018–2021, NOK öre (eurocent) per KWh
Source: Norwegian government tax proposals 2018–2021 (St prp. Nr1 skatte-avgifts- og tollvedtak 2018–2021).
Electricity used for the purpose of chemical reduction, electricity used in electrolytic, metallurgical and mineralogical processes, in greenhouses, rail transports and households in Finnmark County and seven municipalities in northern Troms are completely exempted from the electricity tax. Additionally, the supply of electricity for household purposes is exempted from the value added in Northern Norway (Finnmark, Troms and Nordland counties) (NCM, 2019).

5.1.2 Base tax on mineral oils

An excise tax on heating oil was introduced in the 1970, removed in 1993, and then re-introduced in 2000 based on the argument that increases in the tax on electricity should not lead to an increase in demand for environmentally harmful oil for heating purposes (NCM, 2019). Some sectors are exempt from the base tax such as international shipping, fishing and catching in domestic and close by seas, fish oil and meals industry, domestic flights and petroleum extraction on the continental shelf. Since 2011, the base tax has been subject to an increase in price levels. The general tax rate has been stable over a long period, where the general rate was set to a level of 1.74 NOK (Eurocent 0.17) and the reduced rate at a level of 0.227 (Eurocent 0.02) in 2021 (Norwegian government tax proposals, 2021).

5.1.3 CO2 tax

More than 80% of Norway’s greenhouse gas emissions are subject to a fee or quota obligation. From an international point of view, this is a very high proportion. In 1991, both a tax on mineral oil products and a tax on CO2 emissions from petroleum activities on the continental shelf was introduced. The majority of all greenhouse gas emissions from Norway’s oil and gas extraction on the continental shelf and domestic flights are covered by the quota system and fees. The Norwegian government announced in 2021 that it will increase the flat CO2 tax rate by 5% annually, across all economic sectors not covered by the EU ETS scheme, until year 2025. In January 2021, the general tax rate per tonne of CO2 was set to 591 NOK (Euro 58) for emissions not covered by the CO2 emission trading system (Norwegian government tax proposals, 2021).

CO2 tax on mineral oil products

The tax on mineral products was introduced in the beginning of the 1990s with the purpose of contributing to cost-effective reductions of CO2 emissions. Mineral oil, petrol, natural gas, LPG are all included in the tax. Since 2009, the tax has been modified on several occasions. In 2010, the tax was altered to include the domestic use of natural gas and LPG. Three years later in 2013, all the tax levels related to petroleum activities on the continental shelf were increased. The same year, a reduced tax rate on mineral oil used for fishing and catching in inshore waters was introduced (NCM, 2019). See table 22. 

Tax on CO2 emissions from the continental shelf

Similar as the tax on mineral products, a tax on CO2 emissions from petroleum activities on the continental shelf was introduced in 1991. Since 2008, emissions from these activities have been included into the emission trading system, thus the installations need to buy their respective allowances. This implies that the petroleum sector is charged twice, with both the CO2 tax and the prices of the CO2 emission allowances.
To boost the incentives for reducing the CO2 emissions, the government decided to maintain the CO2 tax which is still much higher than the price of the CO2 emission allowances (NCM, 2019). In 2021, the EU ETS level was set to NOK 300 per tonne of CO2 (Norwegian government tax proposals, 2021).
Since 2017, a sub scheme in the CO2 tax on the continental shelf on airborne emissions from natural gas was introduced. In 2021, the tax rate was set to NOK 8.76 (Euro 0.87) per SM3.
Table 22: CO2 tax rates, 2018–2021, NOK (Euro) per litre/Sm3/kg/t/Co2
 
2018
2019
2020
2021
Gasoline
1.16 (0.12)
1.18 (0.12)
1.26 (0.12)
1.37 (0.13)
Jet fuel
1.28 (0.13)
1.30 (0.13)
1.39 (0.13)
1.51 (0.15)
Jet fuel, reduced rate
1.28 (0.13)
1.30 (0.13)
1.39 (0.13)
1.51 (0.15)
Mineral oil
 
 
 
 
Light fuel oil diesel
1.33 (0.14)
1.35 (0.14)
1.45 (0.10)
1.58 (0.16)
Heavy fuel oil
1.33 (0.14)
1.35 (0.14)
1.45 (0.10)
1.58 (0.16)
Domestic use of gas 
 
 
 
Natural gas
1.0 (0.1)
1.02 (0.10)
1.08 (0.10)
1.17 (0.12)
Chemical reduction
-
-
-
0.29 (0.03)
Natural gas, reduced rate
0.057 (0.01)
0.060 (0.01)
0.061 (0.01)
0.065 (0.01)
LPG
1.50 (0.15)
1.52 (0.15)
1.63 (0.15)
1.77 (0.17)
Chemical reduction
-
-
-
0.44 (0.04)
Continental shelf
 
 
 
 
Natural gas
7.30 (0.75)
7.41 (0.73)
7.93 (0.78)
8.76 (0.87)
Source: Norwegian government tax proposals 2018–2021 (St prp. Nr1 skatte-avgifts- og tollvedtak 2018–2021).

5.1.4 The CO2 emissions trading system

Norway has been a part of the EU Emission Trading System (EU-ETS) since 2008 through the EEA Agreement. About half of Norway's emissions are included in the EU ETS, making this a cornerstone in Norwegian climate policy. In October 2019, through the EEA Joint Committee, Norway and Iceland agreed to deepen its cooperation in climate action with the EU. Norway continues to apply the EU ETS Directive, including incorporating the changes for phase four that entered into force in 2021.
During the next decade, the EU, Norway (and Iceland) will also intensify their climate cooperation by aligning their actions to reduce emissions from sectors outside the EU ETS, namely agriculture, transport, waste management and buildings; and to enhance benefits of carbon removals from land use and forestry (European Economic Area, 2019).

5.1.5. Sulphur tax

A tax on sulphur dioxide was introduced in 1970, with the purpose of reducing the emissions of sulphur dioxide, SO2. Today, oils with less than 0.05% sulphur have a zero-tax rate. Norwegian-operated international maritime transport is exempted from paying this tax. Between 2018 and 2005 the emissions of sulphur dioxide, SO2 has decreased with 30% and the tax rates have been stable and adjusted in line with expected inflation. In 2021, the sulphur tax rate was 14.02 compared to 13.1 NOK öre (eurocent 0.01) per litre in 2018 (Norwegian government tax proposals 2021).

5.1.6 Tax on NOX emissions

A tax on NOX emissions was introduced in 2007 with the purpose of contributing to cost-effective reductions in the NOX emissions and related policies and thus support the fulfilment of Norway’s obligations in the Gothenburg Protocol. The tax comprises of three elements:
  1. Propulsion of machinery with a total installed engine effect of more than 750 kW
  2. Engines, boilers, and turbines with a total heating effect of more than 10 MW
  3. Flaring at offshore and onshore installations
The tax is covering both the Norwegian mainland and the continental shelf. Exemptions are made on the excise tax for emissions of NOX for vessels travelling between Norwegian and foreign ports, vessels used for fishing and caching in distant waters, aircrafts travelling between Norwegian airports and foreign airports plus mission units covered by an environmental agreement signed with the Norwegian government for initiating measures to reduce NOX that are implemented in accordance with established national environmental goals (NCM, 2019). In 2021, the NOX charge was 23.48 NOK per kilogram (Euro 2.99) compared to 21.94 in 2018 NOK per kilogram (Euro 2.25) (Norwegian government tax proposals 2021).
Revenues from NOX emissions accounted for 50 million NOK (Euro 4.9 million) in 2021 which is a decrease of 14% compared with 2018, when it was 57 million (Euro 5.9 million) NOK (Statistics Norway, 2022a).

5.1.7 Road usage tax on petrol and auto diesel

As early as 1931, a tax on petroleum consumption was introduced and was up until 1964 earmarked for road construction. This was the first energy-related tax to be introduced in Norway. The current road usage tax was introduced in 1993. The purpose of these taxes is to ensure that users meet external costs connected with accidents, congestion, noise, road wear and tear and harmful local emissions to air (NCM, 2019).
Throughout the years, the tax has been modified on several occasions, such as the inclusion of biodiesel in 2010 and natural gas plus LPG in 2016. Hydrogen used for transportation purposes is still fully exempt from the subjected tax. Another change was made in 2020, when the road use tax was extended further to include natural gas. See table 23 for all details.
 
2018
2019
2020
2021
Petrol (<10 ppm)
5.17 (0.53)
5.25 (0.52)
4.91 (0.46)
5.01 (0.49)
Auto diesel (<10 ppm)
3.75 (0.39)
3.81 (0.38)
3.62 (0.34)
3.58 (0.35)
Bioethanol
5.17 (0.53)
5.25 (0.52)
2.37 (0.22)
2.45 (0.24)
Biodiesel
3.75 (0.39)
3.81 (0.38)
3.62 (0.34)
3.96 (0.39)
Natural gas
-
-
1.02 (0.1)
1.82 (0.18)
LPG
2.23 (0.23)
2.98 (0.29)
3.48 (0.33)
4.27 (0.42)
Table 23: Petrol and auto diesel tax, 2018–2021, NOK (EUR) per litre/Sm3/kg
Source: Norwegian government tax proposals 2018–2021 (St prp. Nr1 skatte-avgifts- og tollvedtak 2018–2021).

5.1.8 Subsidies for energy efficiency and renewable energy

Carbon Capture Storage  

For a long time, Norway has been working on developing the Carbon Capture Storage (CCS) technology. In December 2020, the Norwegian government decided to fund the “Northern Lights” CO2 transportation and storage project in the North Sea (to be operational in 2024). In the Longship project the full CCS value chain will be demonstrated. The cost of the state’s part of the project is estimated at NOK 18 billion (1.7 billion Euro) (Regjeringen, 2021b).

Renewable electricity certificate scheme

Norway and Sweden have cooperated on a common certificate market scheme for renewable energy since 2012. For every MWh of electricity produced from renewable sources, producers receive a certificate. In Norway, the scheme is administrated by the NVE (Norwegian Water Resources and Energy Directorate). Associated costs for the scheme are added to end-users’ energy invoice (NCM, 2019).
The overall goal for the joint electricity certificate scheme was to increase renewable electricity production by 46.4 TWh between 2012 and 2030. This goal was already achieved in March 2021. During September 2020, the Norwegian and Swedish government agreed to amend the previous agreement and build in a discontinue-mechanism for the electricity certificate scheme to end in year 2025. The underlying reason is that the certificate system has played out its role as a driving force to investing in building new renewable electricity production in the two countries (Energimyndigheten, 2022).

5.2 Water

Norway does not have any specific environmental taxes or charges targeting water pollution. Nonetheless, consumers pay a waste-water fee to the municipality or supplier of fresh water. According to national legislation, suppliers of drinking water and wastewater treatment are not allowed to charge additional costs for water-related services, except the cost required to cover the associated expenses. 
About less than one percent of the total run-off in the country is withdrawn for human use. In some parts of the country, water scarcity may still occur, hence during the last years, a trend can be seen among municipalities utilizing metering and volume pricing of households and businesses use of water (NCM, 2019).

5.3 Waste

5.3.1 Tax and refund system on hazardous substances

A tax on trichloroethane (TRI) and tetrachloroethane (PER) was introduced in 2000 with the purpose of reducing the use of these chemicals, since they are harmful to the environment and the health of people. TRI and PER that are recovered for own use are exempted from the tax. For 2021, the tax rate was NOK 77,38 (Euro 7.58) per kg pure compound (Norwegian government tax proposals, 2022).

5.3.2. Tax and refund system for some greenhouse gases

Since 2003 excise taxes should be paid on import and production of hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs) with the purpose of reducing emissions of these harmful substances. The tax also includes all mixtures of HFC and PFC products containing these substances. Recovered HFC and PFC are exempt from the tax. The tax is graded according to the global warming potential (GWP) of the gases. This implies that the rates for the various HFCs and PFCs depend on of the climate effect. In 2021, the tax was 591 NOK (Euro 58) per ton CO2 equivalent (Norwegian government tax proposals, 2022).

5.3.3 Tax and refund system for lubricating oil

A tax on lubricating oil was introduced by the government in 1988 with the aim to reduce unfavorable disposal of waste oil. Lubricating oil used in fishing and catches in distant waters, facilities on the continental shelf, supply vessels and in aircrafts, are tax exempt. As of 2021, the tax is set to a level of 2.35 NOK (Eurocent 0.23) Norwegian government tax proposals, 2022).

5.3.4 Taxes on beverage containers and deposit-refund system

Ever since a tax was introduced on beverage containers in 1994 it has consisted of both an environmental tax as well as a general tax on each unit. The general tax is imposed on all beverage containers that cannot be used in its original form (NCM, 2019). See table 24 below for the different tax rates in 2021.
 
2021
Glass and metal containers
6.20 (0.61)
Plastic containers
3.75 (0.37)
Carton and cardboard
1.53 (0.15)
General tax
1.27 (0.12)
Table 24: Taxes on beverage containers, 2021, NOK (Euro) per unit
Source: Norwegian government tax proposals, 2021.
The producer responsibility supports a deposit-refund system on beverage containers. Refillable beverage contains are part of the deposit-refund system. However, non-refillable glass and one-way cartons are not part of this system, thus instead financed by product fees (NCM, 2019).

5.3.5 Deposit-refund system and producer responsibility for end-of-life vehicles (ELVs)

In 1979 a refund system for ELVs weighing less than 3.5 tonnes was established to encourage car owners to return their vehicles for scrapping. Later, the system included caravans, snow scooters and minibuses (NCM, 2019). A refund of 2.000 NOK (Euro 196) is given when a vehicle is returned and 500 NOK (Euro 49) when a motorcycle is returned (Skatteetaten, 2021).
The Norwegian car importers established an NGO - Autoretur AS in 2007 with the concept of circular economy, thus the business sector itself is responsible for the products put on the market, throughout the product's lifetime, even after it has become waste. It’s free of charge to deliver the car to Autoretur. Since its start, the organization has contributed to the recycling of approximately 2 million cars (Autoretur, 2022).

5.4 Transport

Emissions from the transport sector in Norway is, as in most industrial countries, one of the major contributors to the national emissions. To meet the 2030 targets, specific goals for transport emissions have been formulated in the Granavolden platform. The Norwegian government has set the ambition to reduce the emissions from the transport sector by 50% by 2030, with 2008 as the base year (excluding sea transport and flight).
Norway has also introduced specific city agreements, with the intention that all expansion in personal transportation will be covered by public transportation, walking and bicycling.
The motor vehicle registration tax has been changed over the years in an environmentally friendly direction and preferential tax treatment of electric cars has been strengthened. This has served to increase the number of new zero- and low-emission cars, thus it has also reduced tax revenues for the central government. The CO2 component of taxation of motor vehicles has also increased and is currently based on the new European WLTP standard test cycle. However, the current trend is in line with those exemptions for electric vehicles which are gradually being reduced during the upcoming years (Norwegian Ministry of Finance, 2020). Generous tax incentives over a longer period have contributed to that two thirds of all new cars sold in Norway are electric in 2021 (Statistics Norway, 2022c).

5.4.1 Registration tax

In order to reduce increasing problems with the trade balance, the purchase tax on passenger cars and other motor vehicles was introduced in 1955. The purchase tax increased the purchase prices on new vehicles and thus reduced demand. The tax has primarily been a fiscal tax, although it has shifted towards an environmental focus over the years (NCM, 2014, 2019).
The registration tax, or “One-off Registration tax” is calculated based on the vehicle's tax group, kerb weight, CO2 emissions, NOx emissions and cylinder capacity. For some vehicles, engine power is also included in the calculation. (The Norwegian Tax Administration, 2022a). The various components in the registration tax for passenger cars between 2018 and 2021 can be seen in table 25.
Table 25: Various components in the registration tax for passenger cars, 2018–2021, NOK (Euro)
Component
2018
2019
2020
2021
Weight-based (NOK (EUR) per kg)
0–500*
0 (0)
0 (0)
0 (0)
0 (0)
501–1200*
26.93 (2.64)
25.42 (2.49)
25.9 (2.54)
26.81 (2.62)
1201–1400
67.11 (6.57)
63.35 (6.20)
64.55 (6.32)
66.81 (6.54)
1401–1500
209.71 (20.53)
197.96 (19.38)
201.72 (19.75)
208.78 (20.44)
Over 1 500
243.9 (23.88)
230.23 (22.54)
234.6 (22.97)
242.81 (23.77)
NOX emissions (NOK (EUR) per mg/km)
72.06 (7.05)
73.14 (7.16)
74.53 (7.30)
77.14 (7.55)
CO2 emissions (NOK (EUR) per g/km)
0–70
0 (0)
0 (0)
71–95
929.34 (90.98)
943.28 (92.35)
 
96–125
1 011.42 (99.02)
1 057.04 (103.48)
 
126–195
2 728.96 (267.17)
2 769.89 (271.17)
 
Over 195
3 505 (343.14)
3 557.58 (348.29)
 
Deduction per gram of emissions, for emissions below 70 g/km, applicable down to 40 g/km
952.2 (93.22)
966.48 (94.62)
 
Deduction per gram of emissions for emissions below 40 g/km
1 120.29 (109.68)
1 137.09 (111.32)
 
CO2 emissions (NOK (EUR) per g/km), for WLTP
0–87
0 (0)
0 (0)
88–118
773.91 (75.77)
985.23 (96.45)
119–155
867.25 (84.90)
1 104.05 (108.09)
156–225
2 272.56 (222.48)
2 352.1 (230.27)
Over 225
3 625.17 (354.90)
3 752.05 (367.33)
CO2 emissions (NOK (EUR) per g/km), for NEDC
0–70
0 (0)
71–95
961.2 (94.10)
96–125
1 077.12 (105.45)
 
126–195
2 822.52 (276.32)
 
Over 195
3 625.17 (354.90)
 
Deduction per gram of emissions, for emissions below 86 g/km, applicable down to 50 g/km, for WLTP
 
 
792.25 (77.56)
820.7 (80.35)
Deduction per gram of emissions for emissions below 50 g/km, for WLTP
932.92 (91.33)
965.57 (94.53)
Deduction per gram of emissions, for emissions below 69 g/km, applicable down to 40 g/km, for NEDC
 
 
984.84 (96.42)
 
Deduction per gram of emissions for emissions below 40 g/km, for NEDC
1 158.69 (113.44)
 
*The intervals for the weight-based charge were changed in 2019, and the first two intervals in 2018 were 0–350 and 351–1200.
Source: Norwegian government (2018), Norwegian government (2019), Norwegian government (2020), Norwegian government (2021).
As a vehicle change owner a register transfer fee is paid. The fee is based on the age and type of vehicle. Other exemptions are e.g. vehicles older than 30 years, vehicles transferred between spouses and family members, or vehicles owned less than 2 months. (The Norwegian Tax Administration, 2022b).

5.4.2 Annual excise tax on motor vehicles

From 2018 the annual excise tax is replaced by a traffic insurance tax for vehicles with a total weight less than 7,500 kg. This fee is collected by the insurance companies and would be around the same amount as the previous excise tax (NMC 2019). The details are presented in table 26.
 
2018
2019
2020
2021
Petrol vehicles and diesel vehicles with a factory-fitted particle filter
7.85 (0.81)
7.97 (0.79)
8.12 (0.77)
8.40 (0.82)
Diesel vehicles without a factory-fitted particle filter
9.15 (0.94)
9.29 (0.92)
9.47 (0.90)
9.80 (0.96)
Electric vehicles
0
0
0
5.85 (0.57)
Motor bikes
5.46 (0.56)
5.54 (0.55)
5.65 (0.54)
5.85 (0.57)
Tractors, vintage cars, mopeds etc.
1.27 (0.13)
1.29 (0.13)
1.31 (0.12)
1.36 (0.13)
Source: Norwegian government (2018), Norwegian government (2019), Norwegian government (2020), Norwegian government (2021).
Table 26: Traffic insurance tax, 2018–2021, NOK (EUR) per day
For vehicles over 7 500 kg, an annual weight excise tax is invoiced. The fee is based on the weight of the vehicle, amount of axles and type of suspension. The fee may thus vary considerably from NOK 423 (EUR 41.4), for vehicles with air suspension and weight 7 500 – 11 999 kg, to NOK 10 689 (EUR 1 046), for a vehicle weighing more than 40 000 kg with two plus at least three axles and other suspension. An environmental fee is added based on the EURO class of the vehicle, from NOK 106 (EUR 10.4) for a 7 500 – 11 999 kg vehicle with the highest EURO class, to NOK 15 802 (EUR 1 547) for a heavy vehicle with no EURO class (The Norwegian Tax Administration, 2022c).

5.4.3 Air passenger tax

On June 1, 2016, an air passenger tax was introduced which covers all flights departing from Norwegian airports. The air passenger tax was temporarily suspended in 2019, and re-instated in 2022. Exemptions are flights from the Norwegian continental shelf and airports on Svalbard, Jan Mayen and the Norwegian dependencies, military flights, rescue, emergency or ambulance services, airline employees on business travel, children under the age of two, transit and transfer passengers and NATO (The Norwegian Tax Administration, 2022d).

5.4.4 Road tolls

Road tolls have been used in Norway since 2005, often as a part of the Byvekstavtalen. The revenue from road tolls has increased from NOK 3 billion (EUR 383.7 million) in 2005 to NOK 11 billion (EUR 1 130 million) in 2018 and corresponds to 18–19% of all transport related revenues. The purpose has been both to finance transport infrastructure projects and to reduce car traffic.
Road tolls were first introduced in the bigger cities such as Oslo, Bergen, Trondheim and Nord-Jaeren (in the Stavanger area) and have gradually been introduced in other municipalities. By 2021, a total of 13 municipalities have introduced a road toll, while two have been discontinued. The fee is based on the kind of vehicle and the time of the day, where rush hour passages are the most expensive. The fee is differentiated between diesel cars, petrol cars and different emission standards. From 2018, electric cars are also subject to the fee, but still at a lower level.
The general trend is that the fee has increased in the bigger cities, while many cases show a more stable fee in other areas, as the planned projects that were to be funded from the revenues has been commissioned. The fees are varying between the different cities. The average cost for commuting by car to work has increased from NOK 4.40 (Eurocent 0.46) in 2005 to NOK 19.8 (EUR 1.96) in 2019 (Sand, Øystein; Bjørn Gjerde Johansen; Askill Harkjerr Halse; Svein Olav Sæter´, 2022).

5.4.5 Subsidies to public transport

Public transports are subsidised to make them more competitive and to meet environmental targets. Subsidies are mostly administered at local or on county level. Overall, the usage of public transportation is increasing. From 2020 to 2021, the increase was 4,8% (Statistics Norway, 2022b). The subsidies vary on an annual basis, as well as between the different regions. In the major urban area, the government covers the main part of the public transportation projects (Norwegian Ministry of Transport, 2021).

5.5 Agriculture and natural resources

5.5.1 Tax on fishing fleet and aquaculture

The Norwegian government decided, after a recommendation from the Fisheries Control Committee in 2021, to introduce a tax on controlling fishing fleets. The purpose of the fee is to finance the work of the Directorate of fisheries in terms of control and supervision of the fishery industry. Norway has had a similar tax in the past, thus it was abolished in 2013 (Norwegian government tax proposal, 2021). In 2021, the tax on the fishing fleet generated revenues of 35 million NOK (3.4 million Euro) (Statistics Norway, 2022a).
The control and inspection of aquaculture is conducted by the Directorate of Fisheries and is financed through a sectoral fee since many years. After a revision in 2019, it was concluded that the fee only covered about 80 percent of the relevant expenses. Hence, in 2021 it was decided to increase the fee on control and inspection of aquaculture (Norwegian government tax proposal, 2021).

5.5.2 Tax on pesticides

Since the beginning of the 1990s a tax on pesticides have been collected by the government. The pesticides are grouped in seven classes depending on their health and environmental risk, and the tax is paid according to this scheme, plus the size of the land used. Over time, the revenue from the tax has decreased. The tax has created incentives to use pesticides with lower health and environmental risks (NCM, 2019). Revenue from taxes on pesticides decreased with 20% from 2019 to 2021 and accounted for 56 million NOK (5.48 million Euro) in 2021 (Statistics Norway, 2022a).
Nordic Council of Ministers I www.norden.org/publications I pub@norden.org