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Tax system

The public sector in Norway pays for extensive services in the interests of the population, including a public health system under which everyone is entitled to treatment, has a right to education and help in several other areas. The taxes that we pay are spent on public services such as healthcare, hospitals, education and transport and communications. In addition to covering general public expenditure, taxes are designed to contribute to greater equality between individuals.

Taxes account for the most of local and central government revenues. A distinction is drawn between direct and indirect taxes. The direct taxes are infome tax and wealth tax.

Indirect taxes include value added tax (VAT). It is a tax we pay when we buy goods and services. It means that some of the prices that we pay for goods or services is in turn paid to the public purse.

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