Compared with other Scandinavian countries, Norway’s tax level is still the
lowest, and in Western Europe, the level is just above average.
According to the gross domestic product after 2001, duties and taxes in
wealthy countries has comprised of an increasingly smaller part of the value
added to the gross domestic product. Other European countries are
experiencing similar trends, according to the Norwegian daily, Dagsavisen.
According to the Organization for Economic Co-operation and Development
(OECD), the reason for this is that the tax levels have been reduced for
both private persons and for business and industry, in addition, the
economic slump in the world economy has contributed to lower tax income for
the national government.
Norway has the lowest tax level in Scandinavia compared to Sweden and
Denmark. In Norway and Sweden a larger share of the taxes are collected
through social security duties, while a large part of the money in Denmark
is collected through taxes on income and property.
“The tax level has been lower in Norway than in both Sweden and Denmark for
quite some time, but many people still believes that we are on the top,”
said Ola H. Grytten, professor at the Norwegian School of Economics and
Business Administration to Dagsavisen. “When compared with Western Europe,
Norway is not far above the average.”