Faroese fishing fees and special taxes should be replaced with lease payments

The 2024 political agreement on fishing fees and special taxes for Faroese aquaculture is not a sustainable solution and should be replaced with a lease-based system, according to a new analysis.

The current fee structure for aquaculture is overly complex and lacks transparency, argues Beinir Henriksen, author of a thesis on the subject from Copenhagen Business School, as reported by Faroese broadcaster Kringvarp Føroya.

Henriksen describes the existing system—which combines fishing fees and special taxes—as two distinct and poorly coordinated measures that fail to meet basic tax policy principles. “The charge on aquaculture is not a tax in the traditional sense,” he states.

The 2024 agreement was signed by most political parties, with the exception of the Union Party, which opposed the terms. Henriksen’s findings were first presented in the Faroese radio program Breddan and are available in full on the broadcaster’s website.