Coalition partners clash over income-tax cuts, threatening government majority
Four parties supporting the coalition are demanding a reshuffle of the proposed income-tax relief, arguing it benefits high earners too much and could jeopardise the government's majority.
The ruling coalition is confronting internal dissent as its four supporting parties demand a redistribution of the income-tax relief, saying one outlet plan favours high-income households. Business organisations, led by NHO and Virke, have also voiced strong opposition to the high level of owner and wealth taxes, warning of reduced investment and competitiveness. Arbeiderpartiet has defended the tax package, linking it to broader equalisation policies like an increased personal allowance. With the budget deadline approaching, the government must negotiate extensively with its partners to secure enough votes in the Stortinget to pass the budget.
Why it matters
The dispute could prevent the government from passing its budget and maintaining a parliamentary majority.
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