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Greek shipowners to extend voluntary tax contributions

Greek shipowners to extend voluntary tax contributions
Greek shipowners will extend for another 12 months the additional tonnage tax they have agreed to voluntarily pay to help the Greek state meet its financial obligations.

An egm of members of the Union of Greek Shipowners (UGS), on 26 June , unanimously approved the proposal put by UGS president, Theodore Veniamis, to extend the tax for another year.

Shipowners signed the voluntary agreement in July 2013 with the country's then Prime Minister Antonis Samaras and it was amended in July 2014, to be formalised and turned into official state law. The agreement expired earlier this year, but the owners stay loyal to it.

The term voluntary is used in order for the levy to comply with the Constitution of Greece, which prevents any type of taxation towards Greece-based shipping companies, other than the tonnage tax.

Under the agreement the UGS committed to contributing an extra EUR420m in a one-off arrangement, which run through the period 2014 up to the first quarter of 2017. Each year, shipping committed to contribute at least EUR 105m, via a voluntary levy imposed on companies based in Greece regardless of the flag state they are using. This means at least 478 shipping companiesvwere involved into this levy.

Addressing the June 26 egm, Veniamis said the majority of companies responded positively "demonstrating once again the unity and solidarity ofvthe sector, as well as its desire to support its homeland during difficult times".