The government of the Faroe Islands is proposing a change to the current tax model for salmon producers in the country, increasing the maximum tax rate up from today's 5 percent to as much as 20 percent.

The new tax would be effective from Aug. 1, 2023 if it is passed by the parliament and the proposal is currently in consultation until March 16.

"The Faroese government's proposal is better for the salmon industry in comparison with what the Norwegian government is proposing," Bakkafrost CFO Hogni Jakobsen told IntraFish.