The Organisation for Economic Co-operation and Development – OECD – presents today its annual review of the Norwegian economy. The report gives a comprehensive analysis of the economic development and medium term outlook for Norway, as well as a thorough discussion on several structural policy issues. Tax policy is subject to a special review.

In his comments to the report, Finance Minister Mr. Gudmund Restad says that Norwegian authorities generally share OECD’s assessments of the Norwegian economy. The major challenge is to return to robust non-inflationary growth. It is important to bring Norwegian cost and price inflation down in line with our trading partners. I would agree that the wage development seems to be a major risk to the outlook for the Norwegian economy, says Mr. Restad.

The Minister emphasises that the OECD has produced a comprehensive survey of the Norwegian tax system, and pointed at several challenges to Norwegian tax policy. The Government is duly aware of these challenges. The Government will propose changes in the VAT-system and a new system for the valuation of dwellings this spring. The Government is also reviewing other parts of the tax system, e.g. the taxation of petroleum companies.