Smyril Line raises alarm over proposed road tax on foreign vehicles in Faroe Islands

Smyril Line expresses concern over the government’s intention to impose a road tax, also referred to as a weight tax, on foreign vehicles entering the Faroe Islands. The company argues that this tax would yield negligible revenue while significantly harming the tourism sector.

The proposed legislation to collect the weight tax from foreign vehicles is anticipated to be presented to the parliament this autumn.

Jens Meinhard Rasmussen, managing director of Smyril Line, which transports nearly all foreign vehicles to and from the islands, points out that such a charge would primarily affect the travel industry. He is skeptical about the tax’s effectiveness, suggesting that any revenue generated would likely be consumed by administrative costs.

Rasmussen questions the rationale behind increasing burdens on the tourism industry, which is still recovering from the impacts of the COVID-19 pandemic. He believes that imposing additional fees at this sensitive time does not make sense for the sector’s recovery.

As discussions around the proposed tax continue, the implications for the Faroe Islands’ tourism sector and overall economic recovery remain a focal point of concern for local businesses and service providers.