Amended Fishing Tariff Legislation Proposed in Congress
Revamped Rewrite:
Hanna Katrín Friðriksson, the Minister of Industry and Trade, has sent a tweaked bill to the Althingi, proposing a hike in fishing fees. The bill underwent a rework following a public consultation period, amidst criticism from municipalities and small-scale fishing operators.
Iceland Monitor Article: "Adjusted Fees Might've Garnered Extra ISK 10 b Last Year"
As per a government statement, the modifications address concerns that the proposed surcharges could unfairly target smaller operations and lacked a comprehensive impact analysis.
** escalating thresholds**
The bill invited public comments between March 25 and April 3, leading to 112 responses. Many respondents worried about the financial stress the suggested fees could impose on small and medium-sized businesses in the fishing sector.
In response, exemption thresholds have been boosted. For most fishing categories, 40% of the initial ISK 9 million (~€60,000) in annual assessment is now free of charge. For cod and haddock, the exemption has been increased to 40% of the initial ISK 50 million (~€335,000).
These alterations are specifically designed to minimize the bill's impact on small fishing operations.
Shouldering the Brunt
The revised bill now incorporates a detailed impact analysis. It offers a study on how the proposed changes would affect the sector's largest 100 companies, provides data on the fishing industry's overall taxation, and presents a comparison with Norwegian fish pricing systems.
Per the updated proposal, the 30 biggest fishing companies are projected to account for approximately 90% of the total fees under the revised system.
Iceland Monitor Article: "Hanna Katrín Friðriksson: 'Here's the Corrected Proposal'"
Unfortunately, the Icelandic Fisheries Association has voiced concerns about the fee model's transparency. They've requested legal and operational data to justify calculations, uniform metrics across vessel sizes and regions, and consultations with the Competition Authority regarding economic implications.
The amendments aim to balance revenue generation with protections for smaller operators; however, debates persist about regional impacts and calculation methodologies.
- Hanna Katrín Friðriksson, the Minister of Industry and Trade, updated a bill that proposes increasing fishing fees for the fisheries industry, taking into account concerns about disproportionately affecting smaller operations.
- The revised bill now contains a detailed impact analysis, offering insights into how the proposed changes would affect the top 100 companies in the fishing industry, providing data on the overall taxation of the fishing industry, and comparing this to Norwegian fish pricing systems.
- Despite the adjustments, the Icelandic Fisheries Association has voiced concerns about the transparency of the fee model, requesting legal and operational data to justify calculations, uniform metrics across vessel sizes and regions, and consultations with the Competition Authority regarding economic implications.
- Under the updated proposal, it is projected that the 30 biggest fishing companies will account for around 90% of the total fees under the revised system, with most categories seeing escalating thresholds, exempting 40% of the initial assessment fee for annual costs below certain amounts, such as ISK 9 million (~€60,000) for most fishing categories and ISK 50 million (~€335,000) for cod and haddock.
