Proposal to Increase U.S. vessel Tonnage Duties
The House Committee on Transportation and Infrastructure issued a Press Release stating that, as part of the budget reconciliation process, it will propose that vessel tonnage duties be increased. Under the proposal, the duty on a vessel arriving from a foreign port in North America, Central America, the West Indian Islands, and the Bahamas Islands would be increased from 2 cents per ton to 4.5 cents per ton, not to exceed 22.5 cents per ton in a single year. The duty on a vessel arriving from any other foreign port would be increased from 6 cents per ton to 13.5 cents per ton, not to exceed 67.5 cents per ton in a single year. It is estimated that this proposal will increase federal receipts by $32 million in fiscal year 2006 and by $156 million for the five-year period 2006-2010.
Source: HK Law