For the period between 2014 and 2017, owners are to pay $132.2m annually, making their total contribution for the period $528m. The new tax is in addition to tonnage tax which will continue to be paid.
In July 2013 the UGS agreed with Prime minister Antonis Samaras to increase their tax contributions on a "voluntary basis" for three years. But when the necessary legislation was table in parliament at the end of 2013 the tax had become "mandatory", leading to an outcry from the UGS and London's Greek Shipping Cooperation Committee (GSCC) leading to a stand-off between the government and shipowners.
UGS president Theodore Veniamis, described the legislation as "a constitutional deviation”. Haralambos J. Fafalios, chairman of the London-based GSCC said the higher tonnage tax was "unconstitutional" and "could have very significant long term ramifications" for the Greek flag. Both spoke of the breakdown in trust and cooperation between the government and the maritime community.
But the issue went deeper than just the tax, it centered on mis-trust of the government. Veniamis declared a negative climate had been created "for any type of business investment in Greece, since the legal stability of the institutional framework is a prerequisite for any prudent investor".
Now after an amendment was submitted to the Greek parliament September 30 the shipowners' contribution will start going into the country's coffers.
In the amendment, the word “voluntary” was added next to “contribution”, while the payment window was stretched by a year, starting from the end of October.
The last installment will be handed over in February 2017, so as to be accounted for in the 2016 budget.
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