Government projects revenue shortfall from fishing fees in Iceland for 2024

The government aimed for a revenue of 360 million krónur from fishing fees in 2024. However, due to high production costs and low prices in the international market, the fish production fee has recently stabilized at just half a percent.

The last revenue entry from the fishing industry was recorded on November 1, translating to approximately two million krónur monthly overall. This indicates that the total expected revenue for 2024 will be less than 290 million krónur, over 70 million krónur short of the budgeted figure.

According to the current fishing fee legislation, the percentage of the fee is determined by the difference between the international market price and production costs. The fee structure features nine tiers, ranging from the lowest at 0.5% to the highest at 20%. This year, the fishing fee only peaked at 10% once, primarily hovering around 0.5%.

A new law on fishing fees will come into effect on January 1. This legislation is the result of an agreement between the government and the Union Party, raising the fishing fee to 7.5% instead of 20%. Additionally, the agreement stipulates the imposition of a special 8% tax on companies involved in fish farming, although these revenues are not expected to materialize until 2026.