Iceland Parliament Passes Bill to Amend Various Tax Laws Under 2026 Budget

The Icelandic Parliament (Althingi) Dec. 18, 2025, passed Bill No. 596, to amend various tax laws under the 2026 budget. The bill includes measures to: 1) increase excise duties and taxes on alcohol, tobacco, nicotine, vehicles, fuel, and clean energy vehicles; 2) introduce special excise tax reductions for competition vehicles under strict conditions, increase annual motor vehicle taxes and fees for financial supervision, and reduce the cost rate for a debtors’ ombudsman; 3) adjust mileage and oil tax rates for vehicles, including new fee tables based on a vehicle’s weight and type; 4) update pension fund regulations, with general increases ...