Greek Reactions Divided to Voluntary Double Taxation
Greek shipowners remain divided over the country's recent double taxation policies.
The Union of Greek Shipowners agreed to a voluntary tax increase earlier this month in order to further stimulate the national economy. This tax increase is on top the one recently imposed on foreign-flagged vessels earlier this year.
Trade publication Lloyd's List reports:
Shipping remains a “major and successful component” of the Greek economy, despite a reduction last year in direct foreign exchange earnings from the industry, the Union of Greek Shipowners has said.
Receipts from shipping fell by more than 5.7% in 2012 but still amounted to €13.3bn ($17.3bn), according to the UGS’ annual report for 2012-2013.
The report cited independent studies projecting that the total contribution of the sector to gross domestic product was likely to have “substantially exceeded” 7% last year.
It outlined other ways that shipowners are seeking to aid the country financially, notably through a voluntary three-year doubling of tonnage tax payments and a social welfare programme to help families worst hit by the country’s financial crisis.
The self-imposed tax hike comes on top of a government measure launched this year to extend tonnage taxes to Greece-based operations with vessels under foreign flags.
UGS president Theodore Veniamis said it was “most unfortunate” that the country’s economic meltdown coincided with one of the deepest crises to face international shipping.
Despite this, he said, “on this difficult path towards the revival of the country, Greek shipping will remain a reliable partner”.
Mr Veniamis said: “The existing contribution of Greek-owned shipping to the Greek economy is decisive but also its potential contribution is equally, if not more important.”
The annual report hailed improved relations between the shipping industry and the state, exemplified through the re-establishment last year of an autonomous shipping ministry.
Co-operation between shipping industry and the state was “imperative”, in the current adverse climate, to retain the competitiveness and sustainability of Greek-owned shipping.
“In this way, it may continue, through its establishment in Greece, to remain a major and successful component of the national economy,” said Mr Veniamis.
According to the UGS report, despite recession and oversupply, Greek oceangoing shipping remained “particularly competitive” with Greek owners controlling more than 15% of the world fleet.
“Its ability for adjustment in ever-changing and demanding conditions is witnessed by investments in new ships,” said UGS. “However, it is estimated that the shipping crisis may continue in the three coming years.”
UGS said that Greek-owned tonnage remained in first position internationally with 15.6% of total world deadweight tonnage.
Greek-owned tonnage under European Union flags accounted for more than 42.7% of EU capacity.
Meanwhile the Greek flag ranked sixth internationally and second in the EU after Malta, UGS said.
