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Changes to the Revenue Tax on salmon farming in the Faroe Islands passed through parliament

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With reference to the previous press release from Bakkafrost on 9 March 2023 mentioning expected changes to the Revenue Tax in the Faroe Islands. (ref. NewsWeb (oslobors.no))

Today the Faroese Parliament has passed a proposal to adjust the revenue tax for the salmon farming industry, effective from 1 August 2023.

A total of 9 different tax rates can be applied, dependent on the difference between the monthly FishPool Index prices and the average production cost for the Faroese salmon industry. The average production costs will be assessed twice a year. The applicable tax rate range from 0.5% to 20.0%.  

The tax rates are as follows:

FishPool Index Price (P)
Cost of production (C)         Tax Rate
(all in DKK)

P    <  C                         0.5%
C    <= P < C+5                   2.5%
C+5  <= P < C+15                  5.0%
C+15 <= P < C+20                  7.5%
C+20 <= P < C+25                 10.0%
C+25 <= P < C+30                 12.5%
C+30 <= P < C+35                 15.0%
C+35 <= P < C+40                 17.5%
P    >  C +40                    20.0%


Contacts:

  • Regin Jacobsen, CEO of P/F Bakkafrost: +298 23 50 01 (mobile)
  • Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 23 50 60 (mobile)

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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