Compared with other Scandinavian countries, Norways 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.
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