The exemption from the CO2 tax for the fishing fleet will continue, following days of uncertainty and political debate in Norway.
The clarification came after discussions in parliament and input from industry group Fiskebåt. Proposals to change or remove the exemption were withdrawn, and no vote was held.
No change after political confusion
Recent days saw confusion over whether the exemption would be affected by rules under the EEA agreement. Fiskebåt stated there was no basis for linking the exemption for fishing in coastal waters to state aid concerns.
The delay in introducing the exemption, first planned for 1 April and then moved to 1 May, was due to practical issues, not legal risks, according to the organisation.
Temporary tax changes confirmed
Norway’s Ministry of Finance confirmed that remaining tax measures will take effect from 1 May and run until 1 September.
These include reduced taxes on diesel and fuels used in fishing, shipping, and construction. Some measures still face unresolved state-aid questions under ESA. Still, the exemption for fishing in coastal waters is not expected to face sanctions.
The government estimates that the temporary cuts in CO2 tax will reduce state revenue by about NOK 2.2 billion, equal to roughly EUR 190 million.
The measures aim to ease fuel costs for several sectors, including the fishing fleet.