Council tax dispute rages on

11.01.2019 - 12:59
Council tax dispute rages on
The finance ministry is locked in a heated tax debate with local councils
Local councils say state laws are eating away at municipal finances.

The Ministry of Finance is accusing the municipalities of misleading the public, while the municipalities say the finance minister is constantly shrinking their revenue stream.

According to Kommunufelagið (the Municipalities Association), government laws have caused local council losses of more than DKK 50 million in 2018 and 2019. The same laws, the association argues, save the national treasury DKK 20 million.

This discrepancy mainly comes as result of the recent amendments to the early retirement benefits law, according to Kommunufelagið.

But the Ministry of Finance argues that many other state laws directly boost local council revenue. All in all, amendments to government laws should not add a financial burden to the local councils – on the contrary, says the ministry.

After numerous failed talks and rejected proposals, the disputing parties appear to be no closer to an agreement on council taxes.

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