Local councils “kept in the dark”

Tórshavn mayor Annika Olsen welcomes news about tax breaks but she is not happy to receive a big bill from the government without having been consulted on the change.

Olsen is referring to a proposed law amendment which seeks to introduce annual tax breaks of DKK 50,000 for apprentices and three amendments aimed at increasing the monthly pension payout by up to DKK 1,080. 

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The mayor says this is not the first time that local councils are presented with big bills as a result of decisions made in Parliament without prior consultation with the municipalities.

The tax breaks are expected to cost Tórshavn municipality DKK 10 million in total per year – DKK 6m for the tax break for apprentices and DKK 4m for the pensioners’ tax break.

Olsen expects and hopes that the government will reimburse the local councils for these added bills.

 >> SEE ALSO Tax breaks for apprentices

“Our local councils are doing well these days, but they also face increased challenges,” she says.

“If it turns out that we will struggle to pay these bills, it is only fair that we receive some compensation from the government, because we were left in the dark about these changes.” 

Translated by prosa.fo