Faroe Islands to temporarily reduce oil taxes

The Faroese government will propose a temporary reduction in oil taxes, newly appointed Finance Minister Aksel V. Johannesen announced Monday, according to public broadcaster Kringvarp Føroya.

Speaking ahead of his first finance committee meeting, Johannesen said the measure would provide relief for “those connected to oil” and last for “three or four months.” He did not specify the scale of the reduction but confirmed it would be “significant.”

When asked about working under his nephew, Prime Minister Beinir Johannesen, the former prime minister responded that his nephew “has been in parliament since 2019—seven years—so one learns to keep things separate.”

The proposal will be presented to the Faroese parliament, the Løgting, for approval.