Amended Fish Fee Legislation tabled in the Parliament initiated
The Minister of Industry and Trade, Hanna Katrín Friðriksson, has reworked a fishing fee bill and submitted it to the Althingi, aiming to soften the impact on smaller operators in the industry. The bill underwent changes following public consultation, addressing concerns about disproportionate burdens and insufficient impact assessments.
A More Affordable Bill for Smaller Operators
During the public comment period from March 25 to April 3, 112 responses were received. Many voiced concerns about potential financial strain on small and medium-sized enterprises in the fishing sector.
To address these concerns, the bill now features increased exemption thresholds. For most categories of fishing, 40% of the first ISK 9 million in annual assessment will be exempt. For cod and haddock, key species in Icelandic fisheries, the exemption is 40% of the first ISK 50 million.
The Big Boys Footing the Bill
The revised bill also contains a comprehensive impact analysis. It highlights how the proposed changes would affect the 100 largest companies in the sector, offers data on total taxation of the fishing industry, and compares the scheme to fish pricing systems in Norway.
As per the updated proposal, the 30 largest fishing companies will shoulder approximately 90% of the total fees under the new structure.
A Clearer Picture of the Impacts and Benefits
The revisions aim to create a more balanced system, generating substantial revenue while easing financial pressures on smaller businesses. The changes in the revised bill aim to:
- Soften the bill's impact on smaller fishing operations
- Address criticisms about disproportionate burdens and insufficient impact assessments
- Shift more of the fee burden to larger companies, potentially reducing the financial strain on smaller and medium-sized operations
The bill projects additional revenue of ISK 2 billion (approximately USD 15.5 million) in 2025, increasing to ISK 3 billion (USD 23.2 million) in 2026 and ISK 4 billion (USD 31 million) from 2027 onwards. This suggests that the changes are intended to generate revenue while protecting smaller businesses through exemptions.
All in all, the revised bill seeks to strike a balance between revenue generation and the sustainability of the fishing industry, particularly by alleviating financial pressures on smaller businesses.
- The Minister's revised fishing fee bill, presented to Althingi, aims to soften the financial impact on smaller fishing operations within the industry by offering increased exemption thresholds.
- The comprehensive impact analysis included in the revised bill offers valuable insights into how the proposed changes would affect the 100 largest companies in the fishing sector, compared to fish pricing systems in Norway, and under the new structure, these top 30 companies are expected to shoulder approximately 90% of the total fees.
- In an effort to create a more balanced system, the revised bill aims to generate substantial revenue while easing financial pressures on smaller businesses by addressing criticisms about disproportionate burdens and insufficient impact assessments, and by shifting more of the fee burden to larger companies, potentially reducing the financial strain on smaller and medium-sized operations.
