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Greek bailout: Shipping faces higher tonnage taxes, phasing out of special treatment

Greek bailout: Shipping faces higher tonnage taxes, phasing out of special treatment
Greek shipowners face higher tonnage taxes and the phasing out of special tax treatment under the terms of the 3rd bailout deal for the cash-strapped country.

Included in a raft of new tax measures and reform under the EUR86bn bailout deal, which is due to be voted on by the Greek parliament today, is a plan adopt legislation to increase rate of tonnage tax and phase out special tax treatments for the shipping industry.

The tonnage tax increase comes as part of required “prior actions” from the EU to raise tax revenues, while the phasing out of special tax treatment for the shipping industry is a “key deliverable” in demonstrating credible fiscal policies according a 29 page draft document posted online by the Wall Street Journal.

A present the special tax treatment of the shipping industry is guaranteed under the country’s constitution.

In the interim a voluntary contribution scheme under which the shipping industry doubled the tax it paid, providing a total in EUR420m in total revenues until 2016 will be extended to 2018.

The threat of higher taxes has seen Greek shipowners exploring alternative locations including neighbouring Cyprus and the city-state of Singapore.

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