Greek Shipping Fears Syriza Tax Plan
Will the new government in Greece led by radical-left party Syriza levy higher taxes that the shipping industry can’t afford? A report in WSJ says that several owners in Greece’s important shipping sector are worried about this.
Some owners say they plan to limit their operations in Greece or move out of the country altogether, if the industry is unable to reach a compromise with the government.
Syriza, Greece’s radical left-wing coalition party has made public a substantial position paper that, if implemented, could lead to a flight from the Greek flag and even to shipping offices upping sticks.
Syriza has outlined some rather controversial plans for the maritime industry in the country, and it’s got people all hot and bothered.
Tax breaks that are not directly related to shipping activities will be abolished, while the party would re-examine from scratch all tax concessions given to ship-owners and shipping companies, and their legal framework, with the aim of them “contributing according to their real abilities to the economy of our country”
Shipping is one of the few sectors in Greece that has successfully weathered a ravaging debt crisis which wiped out about a quarter of the economy over the past five years and impoverished much of the population. It is one of the country’s biggest employers, providing about quarter of a million jobs, and makes up 8% of the economic output in a country where unemployment is running close to 30%.
Although the Union of Greek Ship-owners (UGS) came to an agreement with the current government that owners would voluntarily double the tonnage tax they are paying, Syriza is clearly thirsty for more.
Greek Ship-owners Union president Theodore Veniamis said three days before the elections that: "Greek Shipping is willing to offer a great deal to the local economy under one non-negotiable condition: respect of the existing institutional framework of operation that allows it to remain globally competitive."
He added that Greek-owned shipping wishes to remain in Greece, and is above party policies and interests.
