Proposed fuel tax hike draws criticism for disproportionate social impact

A three-month proposal to increase value-added tax on petrol and diesel has faced strong opposition in the Faroese parliament, with critics arguing it unfairly burdens lower-income residents, Faroese broadcaster Kringvarp Føroya reports.

Opposition MPs and transport representatives condemned the plan during its first reading, calling it “completely socially skewed.” Liljan Weihe of the Republic party described it as “a relief package for tourists,” suggesting it benefits those who can afford fuel rather than everyday citizens.

Finance minister Frants Jensen acknowledged the tax would make filling a tank about 100 DKK more expensive. While some transport officials supported the measure, others—including Erhard Joensen, a transport committee member—rejected it outright. Ben Arabo argued the hike would help “those who have time to spare,” while Sámal Petur í Grund sharply criticised the proposal.

The debate continues as lawmakers weigh the economic impact on Faroese households.