Norway hands back £105m of fish farming tax to aquaculture areas

Norwegian municipalities and county authorities that host fish farms will receive more than NOK 1.4 billion (£105.1 million) through the Aquaculture Fund this year, the government has announced.

The Aquaculture Fund receives income from the sale of new permit capacity for aquaculture, as well as from a type of tax - a "production fee" of NOK 0.965 per kilo that is levied on farmed salmon.

In total, 143 municpalities and eight county councils will receive a payment from the fund, calculated on how much area each individual municipality and county has set aside for fish farming.

Frøya, the westernmost municipality in the salmon farming heartland of Trøndelag county, is the biggest beneficiary, with a payout of NOK 45.67 million (£3.43m).

Local development

“This means a lot for the coast. Through the Aquaculture Fund, we ensure that local communities that make sea areas available for aquaculture can take part in value creation,” said Norway’s fisheries minister Marianne Sivertsen Næss.

“The money gives municipalities greater room for manoeuvre to invest in welfare services and local development for their residents.”

Auctions for aquaculture permits are held every other year, and because there has been no auction of new aquaculture permits in 2025 the payout is lower than the previous year. It is therefore natural to see the payments through the Aquaculture Fund in the context of two years, said the government.

In total, over NOK 6.1 billion will be paid out in 2024 and 2025.

Largest two-year payment

“This is the largest total payment in a two-year allocation period,” said Næss. “The payment comes without any strings attached, and the municipalities are free to assess for themselves how the money best contributes to creating welfare for their residents.”

The Aquaculture Fund receives 55% of the revenue from the sale of new farming permits, and the production tax on fish in its entirety.

Payments from the Aquaculture Fund are distributed 80% to municipalities, and 20% to county municipalities with aquaculture activities.

Since the establishment of the Aquaculture Fund in 2017, NOK 17.1bn has been paid out to municipalities and county authorities along the coast, including this year's disbursement.