Former Faroese finance minister stands by controversial pension tax reform

The Faroese politician who introduced an early tax deduction on pensions says he does not regret the decision, arguing it was necessary due to tax system flaws, Kringvarp Føroya reports.

Jørgen Niclasen, who served as finance minister when the reform was implemented, stated that the tax structure at the time made it “unprofitable to work,” forcing a tax adjustment. He added that the pension tax now funds elderly care that would otherwise lack resources.

Niclasen confirmed his party, the People’s Party, has no plans to reverse the policy. Internal party debates continue over whether the reform was justified.