Monday, February 6, 2023
spot_img
HomeFinance & EconomyCyprus floats automatic ship tonnage tax renewal to buffer sector - minister

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Cyprus floats automatic ship tonnage tax renewal to buffer sector – minister

Cyprus has suggested automatic renewals of tonnage tax systems as one of a series of measures to halt defections and bolster the shipping industry hit by European sanctions on Russia, its shipping minister said.

The recommendation is one of several the island, which has one of the largest shipping registries in the EU, has made to Brussels as part of a sector-wide support package for the oil price cap which came into effect on Dec. 5. It was conveyed to the European Commission this week.

Tonnage tax is a system where ship owners or operators can opt to pay an annual tax calculated on the basis of the carrying capacity of a ship rather than profit. It is subject to reviews by the European Commission, with the present regime in Cyprus’s case extended in 2019 for a 10-year period.

“Imposing sanctions is the right thing, but at the same time we need to support a sector that inevitably faces some harmful effects,” Vassilios Demetriades, Cyprus’s Shipping Deputy Minister told Reuters.

The Group of Seven nations, Australia and the 27 European Union countries imposed on Dec. 5 a $60 cap on seaborne Russian crude, aiming to reduce Moscow’s ability to finance its war in Ukraine and preserve stability on the global oil market.

All those countries combined, Demetriades said, only control 17.5% of the global tanker fleet.

The island has the third largest ship register in the EU, after Malta and Greece. Although its oil tanker fleet is not large – about 10% of the total vessels on the Cyprus register – between October and December of 2022 it lost an estimated 20% of its tankers when talks on an oil price cap began.

The EU Commission has committed to adopting supportive measures for the sector by Feb. 5.

None of the measures Cyprus suggests have budgetary implications. They would provide a clear message to the shipping industry of its value as a strategic asset pivotal to ensuring the energy independence of Europe and its green agenda, the Cypriot official said.

“The issue is not (about) compensating Cyprus or any EU member state for losing business. The issue is to keep shipping in the EU, to bring back any ships which de-flag,” Demetriades said in a telephone interview.

“One of the measures of Brussels could be, for those member states that already have EU tonnage tax approved systems, (that they) could be automatically prolonged for another 10 years, for instance.”

Ways to boost Europe’s shipping sector should also be more prominent in the external relations of the bloc with third parties, Demetriades said.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

LNG boosts CPLP 2022 results

Capital Product Partners L.P. released its financial results for the fourth quarter ended December 31, 2022. Highlights  Three-month periods ended December 31, 20222021Increase/(Decrease)Revenues$79.9 million$63.6 million26%Expenses$42.1 million$35.7...

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...