Brussels has send Athens a list of demands over its maritime sector, which will apply to fishing vessels, port tugboats, as well as yachts rented out to tourists without a crew from the preferential regime. Operators of such vessels will in future be subject to the standard income tax.
The proposals will affect thousands of fishermen and tourist industry workers, who are already struggling because of the stiff austerity measures imposed by Brussels as part of the third bailout of the country.
The European Commission is attempting to assert common EU tax rules in the maritime sector. However, the Greek tax system applying to is fleet dates back to 1975, which is before Greece's accession to the European Union. The Commission says the system is an unfair form of state support.
The Great Greek Shipping Myth. Although a $15 b. a year industry — 7% of GDP, only a small portion stays in Greece. https://t.co/EqWylBj2lq
— Dimo Yagcioglu (@DimoYagcioglu) November 27, 2015
Bailout Pain
The Greek people are already being asked to swallow major changes to the country's pension system — seen by Europe as having been over-generous and unsustainable. Greece's creditors — the International monetary Fund (IMF), the European Central Bank (ECB) and the Eurozone members — have demanded stiff austerity measures to re-capitalize the banks and stabilize its fiscal situation.
#SYRIZA looks at #pension cuts for #Greece's #pensioners by Jan. 15 2016 https://t.co/WONK5kjlcn pic.twitter.com/zHec5Sh4AE
— Proto Thema English (@eprotothema) December 22, 2015
Professor #StathisKalyvas in #CNBC #Europe about #Greece #Crisis, #pensions and #reforms https://t.co/CrbLEb7I6W pic.twitter.com/GJc4gUvLc7
— Europa (@GoogleClassical) December 21, 2015
Negotiations over the third bailout since 2010 involved Athens passing legislation on tax and pension reform, as well as other issues. These included "streamlining the VAT system and broadening the tax base to increase revenue" and "up-front measures to improve long-term sustainability of the pension system as part of a comprehensive pension reform program."
For decades, Greek houses were left with the top storey covered, but with a roof yet-to-be-added, in order to avoid the so-called roof tax. Hence the number of houses in Greece that have twisted rod reinforcing bars sticking out of the top of them.
Greece now has two months to inform the Commission whether it agrees to the latest measures proposed in relation to its maritime industry, or face a probe into state aid in the sector.
