Title: Senterpartiet Proposes Elimination of Water and Waste Taxes
In a bid to ease the financial burden on Norwegian households, the Centre Party (Senterpartiet) has proposed the complete elimination of taxes on water and waste services. The party’s vice-leader, Anne Beathe Tvinnereim, who is heading the work on the party’s election program for the next parliament, announced this new suggestion this week.
Currently, the Norwegian government has lowered the tax rate on water and waste services from 25% to 15%. However, Tvinnereim believes that this reduction does not go far enough and has proposed the removal of all taxes on these services. She argues that this direct handout would significantly benefit consumers across the country and is a more effective way to ensure that communes do not overcharge for these services, echoing the principles of the "self-cost" principle.
Tvinnereim stated, "We are certain that scrapping these taxes will have a direct, positive impact on Norwegian consumers’ finances."
The Centre Party, which has been struggling in recent opinion polls, is also promising cuts to electricity taxes and fuel duties in its election manifesto. The increase in fees for water and waste services has already put a significant strain on many small communes, with Aremark kommune in Østfold facing some of the highest municipal charges in the country, amounting to nearly NOK 29,000 per year before taxes.
Aremark’s mayor, Håkon Tolsby (Sp), lamented the situation, saying, "It’s not cheap, that’s for sure." He attributed the high costs to stringent requirements for wastewater treatment and certified water treatment plants, as well as the need to serve scattered populations over large geographical areas.
The reduction in tax rates introduced in this year’s state budget has prevented Aremark from increasing its fees for water and waste services this year. If the Centre Party’s proposal were to be implemented, it could lead to a significant reduction of around NOK 5,000 in these fees, according to Tolsby. He believes that removing these taxes would be the most effective way to support communes in keeping their water and waste fees under control.
While scrapping these taxes entirely would cost the Norwegian treasury around NOK 7 billion annually, the Centre Party has previously suggested this measure in its alternative budget for 2025. Despite varying rates between communes, water and waste fees have increased steadily in recent years. Generalsekretær Morten Andreas Meyer of the Huseierne consumer organization warns that the situation could worsen, with communes predicting a 60% increase in fees by 2027. Meyer fears that the actual increase could be even steeper.
He explained, "Average households living in ordinary dwellings can expect to pay between NOK 30,000 and 40,000 in water and waste fees." Backlogs in maintenance, new EU requirements, cleaning Oslofjord waters, and challenges related to stormwater and surface runoff are among the reasons for the rising costs. While Meyer supports the proposed tax cuts, he also urges authorities to take more holistic, overarching measures to address the underlying issues.