SHARE
COPY LINK

TRAVEL

Norway considers tourist tax to deal with its growing popularity

Norway is currently enjoying a newfound level of popularity amongst tourists.

Norway considers tourist tax to deal with its growing popularity
A growing number of politicians argue that growing tourism numbers are leaving areas like Lofoten in dire need of new funding sources. Photo: Bo Johanson / NTB scanpix
Spurred in part by ‘the Frozen effect’ that has seen tourism rise sharply since Disney's 2013 film Frozen, which was developed with the support of Norway's tourism agency, some officials began warning that the country was experiencing “too much of a good thing”. 
 
Now a number of politicians are suggesting the implementation of a tourist tax to help local communities deal with the influx of visitors
 
Local Nordland party leaders of the Socialist Left Party, the Christian Democrats, the Liberals and the Red Party have backed a new tourist tax to finance the upkeep needed as a result of the growing tourist numbers. 
 
 
This summer has seen news reports about roadside bathroom facilities in desperate need of maintenance and the ongoing safety concerns at popular tourist spots like the famous Trolltunga promontory, which has become such a popular destination for tourists that mountain rescue services can hardly manage to come to the aid of all of the ill-prepared visitors who run into trouble on their hike. 
 
Spurring the call for a tourist tax is the method in which the Norwegian state transfers funds to local municipalities. The funding is largely based on the number of year-round residents, which means that tourist destinations like the Lofoten archipelago are at a significant disadvantage because its public infrastructure is worn down by tourists who are not factored in to the economic distribution. 
 
 
Thus Nordland is seeing growing political support for a tourist tax, and NRK reports that the idea is also catching hold in Western Norway. 
 
The Christian Democrats’ leader in Nordland, Dagrun Eriksen, is one of the local politicians pushing hard to introduce a tourist tax in the area. 
 
“Down south [in Oslo, ed.] they have no idea of the extent of what Lofoten is facing. So the tourists also need to contribute their fair share and a tourism tax into a shared fund could raise the money needed for necessary infrastructure projects,” Eriksen told broadcaster NRK. 
 
 
Eriksen is likely to have a hard time convincing the Norwegian government to go along with a tourist tax however. In a tourism report issued this spring, the government argued that Norway is already a very expensive destination and that an additional tourist tax would hurt the competitiveness of the national tourism industry. 
 
“The tourism industry needs to find a suitable way to finance this on its own. They have already delivered good solutions in similar situations,” Dilek Ayhan, the state secretary at the Norwegian Ministry of Trade, Industry and Fisheries, told VG. 
 
Ayhan was backed by Progress Party spokesman Erlend Wiborg, who pointed out that despite Norway’s newfound popularity amongst foreign tourists, it is still primarily Norwegians who holiday in the country.
 
“Norway is already an expensive country to take a vacation in,” Wiborg said. “If there is one thing we don’t need now then it is more taxation that will result in fewer tourists and possibly a loss of [tourism] jobs. The solution could be as easy as making people pay for the [public] toilet when they use it.”
For members

TAXES

Taxes: Everything you need to know about Norway’s commuter deductions

Norway has a tax deduction that those who commute to work can claim. However, it must be added manually to tax returns, meaning many miss out. 

Taxes: Everything you need to know about Norway's commuter deductions

There are plenty of advantages to commuting to and from work, whether it be cheaper rent or property prices, being closer to nature, or being able to live closer to your children’s school. 

The obvious downside, apart from making the journey, is the cost. Thankfully, commuters in Norway can claim some of this cost back as a tax deduction. 

Furthermore, you can change tax returns up to three years after they have been submitted. If you have missed out on a deduction, you can log into the Norwegian Tax Administration portal and update the information. 

READ ALSO: Five things to do when you get your Norwegian tax return

Norway’s commuter deductions cover several categories. Firstly, those who spend nights away from home can claim additional expenses such as food and accommodation, you can also make deductions for travel between work and home. 

The Norwegian Tax Administration has a wizard on its website which tells workers whether they are classified as commuters and, therefore, eligible for deductions on its website. 

As a technical point, you can be ineligible for a commuter deduction, but you can also deduct daily travel to and from work. 

Those who travel round trips of more than 37 kilometres between work and home are eligible for the travel deduction. This deduction is calculated based on several factors, such as the length of the journey, whether toll roads and ferries significantly reduce the journey time, and the number of days of the year you work. 

The traveller’s deduction can be claimed for up to 230 days of the year. The low threshold for roundtrips means that journeys between Oslo and nearby towns such as Ski or Lillestrøm become tax deductible.

For example, if you commute 45 kilometres per day for 230 days of the year, you could deduct as much as 702 kroner from your taxes. 

Those who commute up to 100 kilometres per day and don’t use toll roads or ferries to shorten their journeys could deduct around 5,000 kroner from their taxes. 

This is based on the rules for 2023 and commutes from Oslo to nearby towns and cities. The Norwegian Tax Administration has a calculator on its website that can tell you how much you can deduct for your daily travel

If you want to try and add deductions for previous years, be aware that the thresholds for journey length were previously higher. The minimum distance for previous years was a daily round trip of 67 kilometres. 

Under these rules, travel between Oslo and some surrounding towns may not be deductible. Still, you can log in and check whether you can add deductions for previous years. 

How to add these to your tax return

When checking your tax return, you can choose to add information.

There is a section marked “Would you like to provide any other information?”. From there, if you go to the bottom of the list, there should be an option for “work and travel” (when using the English version of the portal). 

From there, you can input your information, making the process relatively straightforward. 

Below you can see some pictures on where to add any travel deductions. 

Pictured is a form from the Norwegian Tax Administration.

You can add the deductions under work/ travel. Photo: Screenshot / The Local.
 
Pictured is the commuter deduction form.

Those who travel for work, or to get to work have a number of potential deductions. Photo: Screenshot / The Local
 
The travel deduction form.

Here you can see where you input your daily travel information. Photo: The Screenshot / The Local.
SHOW COMMENTS