Tsipras proposes to phase out tax breaks for Greek shipping companies

Athens: Greek prime minister Alexis Tsipras has proposed to increase tonnage tax in the country and phase out the industry’s preferential tax treatments as part of his government’s negotiations with its creditors.

There has not yet been any clarification on how the measures will be applied or when.

Jean Claude Juncker, the EU commissioner, personally put pressure on Greece to increase taxes on the industry and to abolish Law 89, the law that grants offshore tax status to shipping and service companies based in the country.

The end could be nigh for Greece-based shipping companies, as implementation of any fiscal changes is likely to cause an exodus of owners to other maritime hubs around the world.

Both Singapore and Hong Kong have sent delegations to Greece in the past six months to attempt to woo Greek shipowners to Asia.

Greek shipping companies have been enquiring about renting office space in Limassol, Cyprus, as Splash reported previously.