Government grants EUR 50.7 mln subsidy to Norway Post

Monday 13 October 2014 14:39 CET | News

The Norwegian government has agreed to offer a EUR 50.7 million (NOK 418 million) worth fund to the development of the Norway Post mailing services.

The Norway Post has informed that the fund has been included within the 2015’s national budget for loss-making postal and banking services, reports.

While the government will fund unprofitable postal services, it is expected to draw a EUR 24.2 million (NOK 200 million) dividend from Norway Post in 2015, which the company said was anticipated to be equivalent to about half of its consolidated net profit after tax. The dividend payment in 2014 was EUR 31 million (NOK 256).

Norway Post said ministers are proposing to increase the tax-free threshold on goods bought from abroad, from EUR 24.2 (NOK 200) to EUR 61 (NOK 500). And, the threshold for simplified customs clearance will be raised from EUR 122 (NOK 1,000) to EUR 36 (NOK 3,000).

The company said the EUR 24.2 (NOK 200) threshold has been in place since the 1970s, and that increasing the level has been debated for many years, although fears for Norwegian industry has thwarted any attempts at reform until now.

Gunnar Henriksen, executive director at Norway Post’s ecommerce division, has claimed that with the implementation of the measures, the company will have more packages to deliver back to Norwegian consumers.

Company representatives have informed that Norway Post currently offers simplified customs clearance for a EUR 16 (NOK 135) fee, while regular customs clearance costs EUR 32 (NOK 2700. The company said when the threshold goes up, the “vast majority” of packages going to Norwegian consumers can go through the simplified customs route.

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Keywords: Norway, Post, government, fund, subsidy, online banking, shipment, delivery, logistics, Mail, Development
Categories: Payments & Commerce
Countries: World
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Payments & Commerce