Indirect taxes

I get increasingly annoyed by the various indirect taxes in Norway, such as the fees for state services.

Re-regisitering a car is one of them, the fee to the state for purchasing a new appartment is another. The latter fee is about 2 percent of the price. Call me crazy, but I don't think the amount of work increases linearly with the price of the apartment or house.

One of the state's largest income sources is the Value Added Tax (VAT), which is 25 percent for generic items, 11 percent for certain groceries, and a whole bunch of other numbers for various transactions, such as 8 percent for the broadcasting license

When I purchased my car the re-registration fee was about 1300 USD. The cost estimates for the same task is about 50 USD.

After intensified media attention on the subject, the government might get more openness around these fees. The Secretary of Finance and myself probably have different reasons to react, however. Her reasoning is that it is unjustified because it is paid by the common man and not "the rich", a classification she place somewhere between one third and half of the Norwegian population in.

In my opinion these services should be priced at self-cost and not serve as yet another indirect tax.

Power outages in Oslo

Up till 100,000 people, or about a quarter of the geographical area of Oslo was out of power for about an hour today. Well, lucky me, I wasn't amongst them.

The reason for it is most probably lighting related, and there have been reported fires in two transformation stations. The subway services were affected and out of service, and multiple trains were stuck in tunnels.

"It isn't often the power goes in such large areas," said information adviser Kjersti Kirkeby at power supplier Hafslund's technical services division.

What gets my attention is the lack of redundancy, if affecting two stations is enough to cut power in large parts of the city, what if you simultaniusly demage four, or six. Businesses are dependant on technology, and far from all have emergency generators and proper Uninterruptable Power Supplies.