Big Energy Users in Iceland Pay Taxes in Advance Skip to content

Big Energy Users in Iceland Pay Taxes in Advance

Representatives of the Icelandic government, the Confederation of Icelandic Employers (SA) and large-scale industries, the largest users of electricity in Iceland, signed an agreement yesterday that these companies will pay ISK 3.6 billion (USD 29 million, EUR 20 million) in taxes in advance.

The Alcan aluminum smelter in Straumsvík, outside Hafnarfjördur. Copyright: Icelandic Photo Agency.

The agreement is intended to counteract the difficult position of the state treasury and encourage increased investments in Iceland’s economy, Morgunbladid reports.

According to the agreement, the large-scale industrial companies—primarily the aluminum smelters—will pay a total of ISK 1.2 billion (USD 9.7 million, EUR 6.5 million) for three years, 2010, 2011 and 2012, in advance for a planned higher income tax and other public tariffs in 2013-2018.

The advance payment will be divided between these companies in accordance with their electricity usage and will be paid in the currency with which they settle their accounts.

The agreement also states that the government will propose in a bill in spring 2010 on a concession in regard to investments in Iceland.

Click here to read more about the situation of the state treasury.

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