However, what the government may have failed to properly consider was that just as they are looking to balance the national books, Norway’s residents also have their own wealth management concerns – and making voluntary tax contributions can disrupt the financial plans even of high-net-worth individuals, particularly if they are in the process of pension or education fee planning.
However, it is probably fair to say that the Finance Ministry would have hoped to raise a little more money than it has so far; a sum that would not even be enough to buy a reliable second-hand car.
Perhaps the explanation for the modest haul is that many of Norway’s residents already pay a tax rate of 46.7 percent, and they are unlikely to feel they want to put Norway’s national wealth management concerns ahead of their own.
“The tax scheme was set up to allow those who want to pay more taxes to do so in a simple and straightforward way,” Norway’s Finance Minister Siv Jensen told press. “If anyone feels their tax level is too low, they now have the opportunity to pay more.”
It is probably pertinent that even Jonas Gahr Store, the wealthy leader of the left-of-centre Labor party, who was a leading critic of what he branded Norway’s unfairly low tax rates, has so far not opted to make any voluntary contributions under the government scheme.
The net result? It is thought that the scheme has cost considerably more to initiate than it has so far raised in voluntary contribution revenue. An unmitigated wealth management failure?
If you are an expat living in Norway and you feel you need some independent financial advice from experts who understand the system, please contact our wealth management team in Norway today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Originally launched by the UK Government as the Post Office Savings Bank in 1861, the NS&I provided the opportunity for both the public to save and as the government to fund the deficit. To encourage post war saving in 1956, Premium Savings Bonds were introduced – but not without some political and religious opposition. Despite the resistance, NS&I has since evolved into one the largest savings organisations in the UK and has approximately 25 million customers and more than £179 billion invested.
Dot com boom, dot com bust! High Interest rates low interest rates, Strong Euro, weak Euro. What was a good thing last year is the worst thing this year. ‘The only thing certain in Life is death and Taxes’ quote made famous by Benjamin Franklin 1789.