Following information that the Greek shipowners reached an agreement with their government to change the way they are taxed in early February, the prime minister’s office now announced that the Greek shipowners have agreed to pay at least 75 million euros ($85.37 million) annually to the state budget under the deal, which replaces a previous voluntary arrangement.
Under the agreement, Greece will now charge a 10% dividend tax, instead of the former way of charging a double tonnage tax, according to a statement by Prime Minister Alexis Tsipras’s office.
Mr. Tsipras said that, under Greek law, shipowners are not obliged to agree on any contribution and that the deal was a “significant” contribution to the country’s efforts to emerge from the 10-years financial crisis.
This fixed rate will allow us to have in our budgets and count some steady revenues, which are something important in the days we go. 10% is an important agreement we have reached,
…he noted.
Greece had for long granted generous tax allowances to its shipowners, a situation which Tsipras had pledged to end when he was first elected in 2015 but had not pursued since then.
Shipping is a vital sector for the country’s economy, with Greek shipowners operating some of the world’s biggest tankers and bulk carriers. Greek shipping accounts for almost half of the EU’s total fleet capacity.
During a meeting between the Prime Minister and the Union of Greek Shipowners on Wednesday, the Prime Minister invited the members of the Union to contribute with investments in the strengthening of the Greek economy’s development, which after years of crisis is ‘in a phase of intense recovery’.
Speaking about the new tax at the annual general assembly of the Greek Union of Shipowners earlier in the month, UGS president, Theodore Veniamis, stressed that the agreement respects the legal and tax framework for shipping-related activity. He has also noted that the industry was supporting ‘the effort the government is making for a better future in Greece‘.
