In a significant shift, the Naalakkersuisut has amended its proposal for the Inatsisartutlov on income tax, opting to discard plans for a controversial special tax that has faced intense criticism. This tax, initially introduced last year by Mute B. Egede, the former Minister of Finance and Taxes, has now been removed from the table, much to the relief of the business community.
The business sector has warmly welcomed this decision, expressing gratitude towards the politicians for heeding their concerns. The anticipated second reading of the revised bill in the Inatsisartut is scheduled for Tuesday, June 10, and its adoption seems likely.
“It’s encouraging to see that Naalakkersuisut has listened and decided to eliminate the special tax from the bill. I am genuinely pleased with this decision,” remarked Kitdlak Knudsen, owner of Carl Lynge A/S, an electrician company he has managed for 23 years with a modest team of around six employees. “This move is beneficial for me, my business, and other companies in Greenland.”
Strong Opposition to the Proposal
As reported in Sermitsiaq, the proposed exit tax faced substantial backlash from various segments of the Greenlandic business community. A joint statement from 14 companies and organizations, along with feedback from the Bank of Greenland, underscored the widespread dissatisfaction with the proposal.
Knudsen was one of the signatories of the joint response, previously voicing concerns that the exit tax could jeopardize his business by making it nearly impossible to find local buyers. “Ultimately, my business represents my future savings,” he explained. “Now, I won’t have to worry about facing double taxation if I decide to sell. Instead, I can focus on growing and enhancing my business.”
- “It’s a positive step for business that the exit tax has been scrapped. Kudos to the politicians for this decision,” said Martin Gjødvad, who runs Greenland’s largest IT company, Inu:it, which employs 20 people. “I addressed my concerns to the tax committee in December 2025 and argued that the special tax would favor Danish companies operating in Greenland over local firms.”
Gjødvad emphasized that the imposition of the tax would distort competition, providing an unfair edge to Danish companies that could operate tax-free while Greenlandic entrepreneurs bore the burden of the special tax.
With the special tax effectively sidelined as the Inatsisartut moves to its second reading, concerns among critics can finally subside—at least for now.