Government has no plans to abolish duties or levies

There are no concrete plans to abolish customs duties, excise duties or other levies, KVF reports. Finance would have to come from other sources if any of them were removed, government minister Aksel V. Johannesen said in response to a question from MP Bjarni Kárason Petersen.

Petersen asked about the tax burden. The oldest available figures date from 1997, when value-added tax accounted for 23.5 per cent of government revenue, while duties and customs accounted for 37.5 per cent.

In 2025, value-added tax made up 28.2 per cent of revenue, and duties and customs accounted for 49.7 per cent.