The state currently collects 33% of profits as a fishing fee, while industry retains 67%. The government estimates the proposed adjustment could generate up to 10 billion ISK (approx. $75m/€70m/£58m) in additional revenue on top of the existing 10.2 billion ISK. However, it has pledged to shield small and medium enterprises with expanded exemptions and graduated levies.
Despite these reassurances, the Association of Fisheries Companies (Samtök fyrirtækja í sjávarútvegi) has condemned the bill, warning it will “attack people and jobs in rural areas.”
“The government now intends to tear this success apart,” the association stated. “By adopting foreign price benchmarks, the government is undermining the integrated value chain that has made Iceland’s seafood sector one of the most efficient and competitive in the world.”
The group warned that processors may relocate operations abroad, leading to increased exports of unprocessed fish to lower-cost countries such as Poland and China, shrinking domestic jobs and tax revenues. “Value creation in this country will be reduced. Jobs in fish processing will be greatly reduced… Innovation will be curtailed.”
It also criticised the government for backtracking on earlier pledges to support value creation in the industry, accusing it of proposing “inefficient fishing,” raising carbon fees, and increasing regulatory burdens.
The bill, if passed, would come into effect on 01 November 2025 for the 2026 fishing year. A public consultation is now open, with stakeholders invited to submit comments until 03 April 2025.