Article | Last updated: 2015-01-20 | Ministry of Local Government and Modernisation
The action zone covers all municipalities in the county of Finnmark in addition to seven municipalities in Nord-Troms: Kåfjord, Skjervøy, Nordreisa, Kvænangen, Karlsøy, Lyngen and Storfjord.
The zone was established in 1990, motivated by the negative trend in population and commerce. In 2003–2004, a White Paper was issued regarding the action zone.
The most important policy instruments in the action zone are:
- Exemption from employers’ national insurance contributions
- Write-down of student loans by up to 10 percent of the original amount, maximum NOK 25,000 per year
- Exemption from electricity tax on consumption
- Reduction in personal taxation
- Increase in family allowance – the so-called “Finnmark supplement”
Former studies have concluded that these policies have had a positive impact.