Finnmark leader keeps tax campaign alive despite little response

One year after Finnmark County Council launched the idea of a special Finnmark tax, central authorities have shown little interest, NRK reports. County Mayor Hans Jacob Bønaa nevertheless says the campaign will continue until the measure is included in the national budget.

The political campaign began at Arendalsuka last year, when the county council allocated one million kroner to promote the proposal nationally. It described the tax as an important tool for reversing population trends and strengthening settlement in the county.

The proposed package would include at least a 10 percentage point reduction in income tax in Finnmark, double child benefits and increased support for employers. The Norwegian University of Science and Technology’s Centre for Economic Research has estimated that the scheme would cost between two and three billion kroner.

The government has instead pursued other financial measures to encourage people to settle in Finnmark, including a higher rate for reducing student loan debt.

The county authority spent about 400,000 kroner on its own event at Arendalsuka last year to launch the proposal. This year’s delegation is much smaller, but Bønaa says it remains important to attend.

It is a good place to promote the message, he says, because politicians, business representatives and other decision makers are present.

Labour Party group leader Linda Beate Randal says last year’s event was successful, but argues that the follow-up has been inadequate. She says it is unrealistic to expect a single initiative to produce results and calls for a broader, systematic effort involving more county politicians.

Bønaa acknowledges that the campaign must be long term and targeted. He says all members of the county council have supported the proposal and should work through their national parties to advance it.

Despite the limited response from the government, Bønaa believes the issue is gaining ground. The Conservative Party, Centre Party and Labour Party in Finnmark now have different versions of a Finnmark tax in their programmes, which he says puts pressure on their national organisations.

Centre Party leader Trygve Slagsvold Vedum has also proposed a strong economic response to the increased rivalry between major powers in the north.

Finnmark County Municipality has commissioned several reports identifying a Finnmark tax as a possible way to encourage young people to move north and remain there. A new report due in December will examine the value created by Finnmark, what it means for Norway and how much returns to local communities in the county.

Bønaa says he hopes the report will show how important Finnmark is to the rest of the country and demonstrate that the county does not live on subsidies.