A mining project in South Greenland will mean more revenues to the greenhouse. But how much is it really about? This is one of the big questions that can be asked in the assessment of - and against the mine project on Kuannersuit.
- There will be personal taxes, in addition to which there will be different taxes and there will be business taxes to be paid. Then there will also be secondary effects because there will be a consumption, says social scientist at Ilisimatusarfik Birger Poppel.
The derived income may come from employees in service subjects such as expansion at the grocery store, restaurants, hairdressers or anything else that is needed for the new citizens in the area.
The preliminary VSB report describes a tax agreement of 35 percent for foreign employees and the normal 44 percent for citizens in Kujalleq municipality.
The report estimates that there will be 715 employees in the mine during operation, which is estimated to provide total tax revenue from employees of just over NOK 100 million per year. Money that will be shared between the country tax and the municipality. And for the municipality it is a significant economic injection, says Birger Poppel.
- About 20 million a year in the operational phase will go to the municipality. This corresponds to an income increase of 10 percent, he says.
When it comes to taxation of the mining company and taxes on the extraction of raw materials, it is immediately a little more difficult to estimate Greenland revenue. It is about such wide-ranging concepts as world market prices, world market prices, composition of production and transport costs, all of which are unknown at the present time.
- But at some point before the company starts, it must make a total estimate. But it is not implemented here and I dare not guess, says the social scientist.
Read the full VSB report HERE
