The Norwegian government is proposing the introduction of a 40 percent resource tax on salmon and trout farming companies.

The proposed tax, which must still be approved by the Norwegian Parliament, is set to take effect beginning in the 2023 tax year and will be applied to volumes above 4,000 or 5,000 metric tons.

According to a release from Mowi, with this proposal, the total tax rate for salmon and trout farming will be 62 percent.

The Norwegian government justified the proposed tax hike, saying the companies use fjords and sea areas belonging to the community with licenses issued by the state, and is given an unlimited protected right to operate as an industry.