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Union of Greek Shipowners strike back at German Finance Minister over tax

Union of Greek Shipowners strike back at German Finance Minister over tax
In a rare intervention in political matters Union of Greek Shipowners president, Theodore Veniamis has taken German Finance Minister Wolfgang Schauble to task over the tax regime covering the Greek shipping industry.

In particular Veniamis took issue with Schauble’s comment that Greek Prime minister Alexis Tsipras has failed to keep a promise to impose heavier taxes on shipowners. Schauble last week told a financial forum in Berlin, that Greece was making insufficient economic progress and was reported as saying "He [Tsipras] came to power promising to tax the shipowners. Nothing has happened."

In a statement Veniamis said: "The recent and unwarranted attack on our country by the German Finance minister, Schäuble, and in particular against Greek shipowners has raised questions. It seems Schäuble has chosen to ignore the particularly favourable regime enjoyed by German shipping, while attacking the regime of Greek shipping, which, also, amounts to 50% of EU shipping, an achievement that seems to cause annoyance.

"At a time when the European Union is called upon to underpin and enhance the competitiveness of its shipping industry against fierce international competition, Schäuble’s criticisms are especially inopportune and unfounded. The question that also arises is whether, despite favourable arrangements at all levels – shipownership, ship management, natural persons – the inability of the German maritime policy to successfully support its shipping is the motivation behind the minister’s statement.

"If the aim of his statement is to undermine the close ties of Greek shipping with its homeland, then it demonstrates that he does not want to see Greece on a path of growth at last. For Schäuble’s information, the Greek shipping community in its entirety responded to the need to enhance the national revenues with its decision four years ago to voluntarily double its annual tonnage tax liability per vessel, even though it historically enjoys constitutional guarantees regarding the level of taxation. This is an initiative that proves the unity and solidarity of the Greek shipping community with its homeland."

Greek owners have long argued they are more heavily taxed than many of their European counterparts, a view backed by a number of studies by international accountancy groups and consultants. They have found Greek levels of tonnage tax are higher than in many other EU countries. Personal tax is another issue.