Norwegian routes face new tax threat
Norwegian regional airline Widerøe is looking into the viability of more than 30 routes in its network if the country’s govt goes ahead with an increase in VAT. The airline said any increase would come on top of other recent rises in taxes and charges that have already rendered some of its routes unprofitable. Norway has several rates of VAT—12%, 23% and 25%. Currently, air fares attract the lowest level of tax, but a recommendation from a specialist group is to raise it to either of the higher rates to simplify the tax system. The Norwegian govt has sent the matter to a public consultation process. “We assume and hope that this will not be implemented,” Widerøe VP Terje Skram said. If the higher rate is implemented, he said “most of our domestic commercial routes will no longer be profitable.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-27/unaligned/norwegian-routes-face-new-tax-threat
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Norwegian routes face new tax threat
Norwegian regional airline Widerøe is looking into the viability of more than 30 routes in its network if the country’s govt goes ahead with an increase in VAT. The airline said any increase would come on top of other recent rises in taxes and charges that have already rendered some of its routes unprofitable. Norway has several rates of VAT—12%, 23% and 25%. Currently, air fares attract the lowest level of tax, but a recommendation from a specialist group is to raise it to either of the higher rates to simplify the tax system. The Norwegian govt has sent the matter to a public consultation process. “We assume and hope that this will not be implemented,” Widerøe VP Terje Skram said. If the higher rate is implemented, he said “most of our domestic commercial routes will no longer be profitable.” <br/>
