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POLITICS

Hash fans slam Norway’s half-baked hypocrisy

Torkel Bjørnson-Langen, the manager of NORMAL, Norway's pro-cannabis group, says the forced resignation of one of the Conservative Party's most promising young MPs over cannabis smoking last month was sadly no surprise.

Hash fans slam Norway's half-baked hypocrisy
Torkel Bjørnson-Langen, the manager of NORMAL, Norway's leading cannabis campaign group. Photo: Campaign for legitimate outlets for hash and marijuana (luhm.no)
I have talked to a handful of younger people from or supporting the Conservative Party about the forced resignation of Erik Skutle, and some of them are quite shell-shocked.
 
Partly it's because they see this as a core liberal issue the Conservative Party should support, but mostly it's because of the hypocrisy. A lot of people in the Conservative Party have personal experience with cannabis, as a lot of people do everywhere these days, and I find it very hard to believe that the senior management of the party don't know anything about it.
 
So the motto seems to be: "Do as we say, not as we act!" 
 
Based on previous experience, we are unfortunately not that amazed; at least not surprised. In the election last year, the Conservative Party was the only party to put "zero tolerance", or "a vision of zero illicit drug use" as they call it, in their programme. And it was also used by some as a core/differentiating issue in the debates. 
 
It fits nicely with their "tough on crime" theme. Although when we and others have proposed that decriminalizing personal possession to free up policy resources that can be re-allocated inside the police, they are not delighted.
 
The funny thing is that the "father" of their "zero tolerance vision",  professor of sociology, Willy Pederson, has
publicly stated that this was a mistake, and that he now recommends a pragmatic and scientific approach where harm reduction is the primary concern.
 
We have on multiple occasions tried to ask members of the parliament how they systematically can overrule the recommendations from their own expert groups and other academic researchers and specialists on the topic. 
 
The only answers we have gotten is:
 
1) We take the holistic view. We see the "bigger underlying issues"  that the more "narrow thinking" academics don't see or don't take into account.
 
2) The public do not want it.
 
Both the left and right say this, although the right have pushed it a little bit harder. 
 
Which stance the politicians take is much more strongly correlated with age than party lines.
 
Another friend told me he thinks this was a step backwards for free speech in Norway. And more importantly: it made him see that the right to free speech is not as strong as we like to think here in Norway. It reminds me of a book title: "Hell no! Your right to dissent in the 21th century."
 

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TAXES

Who will be affected by Norway’s new exit tax and how will it work?

Norway's government is moving forward with plans to enact stricter tax regulations for people leaving the country. The Local contacted the Ministry of Finance to find out the details.

Who will be affected by Norway's new exit tax and how will it work?

A new exit tax is in the works, the Norwegian government announced recently. 

READ MORE: What we know so far about Norway’s plans for an exit tax

The proposed changes aim to close loopholes within the existing tax system, particularly concerning the taxation of gains made on shares while residing in Norway and moving assets abroad.

Under the proposed regulations, those who have left Norway after March 20th, 2024, would be subject to taxes on gains of more than 500,000 kroner that they have accrued while in Norway. 

This move comes as part of the government’s efforts to address a recent outflow of wealth from the country, with Switzerland being a popular destination for tax exiles from Norway.

READ MORE: Why Norway has continued to see an exodus of wealthy residents

Who would be affected – and how would it work?

The new tax would affect both foreigners and locals – as long as they’re tax resident in the country, State Secretary Erlend Grimstad at the Ministry of Finance told The Local.

“The Norwegian exit tax rules, both the current ones and the ones being proposed, would affect natural persons who are tax residents in Norway,” he said.

The tax settlement process upon departure from Norway would require people to address their tax obligations related to gains exceeding 500,000 kroner on shares acquired during their time in Norway.

Emigrants would have several options for fulfilling this tax obligation, including immediate payment, interest-free instalments spread over 12 years, or deferred payment with accrued interest.

“Exit tax on shares will be imposed on individuals who terminate their tax residence in Norway, either according to Norwegian tax law or the applicable tax treaty.

“The rules also apply when an owner resident in Norway transfers shares as a gift to a person resident outside Norway,” Grimstad said, further noting that the new rules would only apply if the deemed net gain at the time of departure or transfer exceeded 500,000 kroner.

When could the new rules enter into force?

The consultation period for the new exit tax proposal began on March 20th and will last until May 21st, 2024. Thus, stakeholders and the public will have the opportunity to provide feedback and insights for the next two months.

Following this period, the proposal will undergo review and potential adoption by the Norwegian parliament (Storting), with the government needing majority support for implementation.

READ MORE: Does Norway really have some of the highest taxes in the world?

However, if the rules are passed, they will apply from March 20th, 2024, Grimstad told The Local.

“This is necessary to counteract tax adaptations in the time between publication of the proposal and adoption of the changes in the Storting,” he said.

The reasoning behind the new exit tax

Commenting on the exit tax developments last week, Norwegian Finance Minister Trygve Slagsvold Vedum said that it was important to uphold the principle of fairness in the taxation process, noting that people should contribute taxes on assets accumulated in Norway.

However, the proposed regulations also include provisions for those intending to return to Norway within the 12-year timeframe, ensuring that their tax liability would be adjusted accordingly.

“When you relocate, it’s only fair that you contribute taxes on what you’ve earned or gained in Norway. However, this process must be reasonable, hence the 12-year rule. Some people may wish to reside abroad temporarily and eventually return home,” Vedum said at the time, according to the Norwegian Broadcasting Corporation (NRK).

The proposed exit tax would extend beyond shares to include gains from share savings accounts and fund accounts. Additionally, transfers of shares with subsequent gains to people residing abroad, such as relatives, would trigger the tax if gains exceed 100,000 kroner, a reduction from the previous threshold of 500,000 kroner.

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