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Norway-New state budget and its impact on our wallets

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Cheaper electricity, cheaper kindergarten and less tax for anyone earning less than 750 kronor. These are some of the changes that the government introduces to the state budget.

- It is nice to be able to present this budget, which sets a new course for our country. All the big numbers ultimately concern people's daily lives, said Finance Minister Trygve Slagsvold Vedum (Sp), unveiling the government's changes to the state budget for next year on Monday.

The Labor Party and the Center Party have to negotiate the budget with the SV to get it through so that everything can be changed. But the direction is already showing. If the government gets what it wants, it will be cheaper to commute to work, use electricity, and have children in kindergarten.

* Two out of three taxpayers receive lower taxes. This group has an average gross income of around NOK 480 and receives around NOK 000 lower tax. 1500 percent taxpayers receive approximately unchanged tax, and 20 percent. receives an increased tax. Among those who receive the increased tax, the average increase is around NOK 13. This group has approximately CZK 12 in average gross income.

* In the winter months, from January to March, the electricity tax is reduced by approximately 48%. The rest of the year is around 9 percent. This means 10 øre cheaper per kilowatt hour in winter, which could mean several hundred kronor saved for the household.

* From New Year on, ferry prices across the country will be reduced by a further 5 percentage points from the price level on January 1, 2021. In total, the reduction will then be 30%.

* The maximum price in kindergartens will be reduced from NOK 3315 to NOK 3050 per month from August 1 next year. According to the government, this will provide nearly 200 families with children children at least CZK 2900 more savings.

Photo: Annika Byrde / NTB

* The CO2 tax will be increased by 28%, as proposed by the Solberg government. At the same time, to compensate for this, it lowers itself road use fee and traffic insurance fee. This latest measure means diesel is NOK 0,31 per liter cheaper and petrol is NOK 0,28 per liter cheaper compared to the Solberg government's proposal, which also increased the CO2 tax.

* In total, taxes will be reduced by NOK 2,3 billion compared to the Solberg government.

* Anyone who is a member of a trade union can receive a higher tax deduction. The union deduction increases from NOK 3850 to NOK 5800.

* The commuter system has been strengthened, incl. by lowering the bottom deduction to 14 for all commuters.

* The so-called Finnmark deduction has been increased by 16 percent to NOK 18. This means lower taxes for all residents of Finnmark and North Troms.

* Car purchase becomes more expensive. The so-called one-off tax is increased for gasoline and hybrid cars. There will also be a fee for re-registration of electric cars and a fee for full motor vehicle insurance for electric cars. The reported VAT on electric cars that cost more than NOK 600 is deferred.

* Travelers will no longer be able to change their tobacco to alcohol quota. For many, this means that after traveling abroad, they can buy less duty-free goods at the Tax-Free store.

Source: NTB
Photo: Stian Lysberg Solum / NTB

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