Tax in Norway
The public sector in Norway provides many vital services to the general population. The tax that we pay is used to finance public services such as health services, hospitals, education and transport. In addition to covering social costs, taxes are also used to promote greater equality between individuals.
Taxes and contributions account for the majority of the revenues received by the government, municipalities and county councils. A distinction is made between direct and indirect taxes. The direct taxes are income tax and wealth tax. Income tax is tax that we pay on money we've earned through work, commercial activity, interest on bank deposits, etc.
Other taxes are indirect taxes, including value added tax (VAT). This is a tax that we pay when we buy goods and services. This means that a proportion of what you pay for goods is passed on to the government.