Greek shipowners have agreed to pay a voluntary tax totalling €420 million, spread over four years, to help the financially-strapped country but parties of the opposition slammed the deal as a government sellout to vested interests.

The new law – passed in parliament on October 1 – applies to Greek-flagged ships and foreign-flagged ones managed in Greece and stipulates that the government will earn an extra  €105 million, annually, in a period stretching from 2014 to 2017.
An earlier deal in 2013 requiring shipowners to pay double the current tonnage tax for a limited period of time came undone after the government sought to to triple the amount.

But the conservative-led government eventually settled for double the amount after more than a year of lost tax revenues, and, according to the shipowners union,  a ‘severe loss of confidence”.

“After discussions that lasted for one and half years and a lot of false moves, I believe the issue was resolved in the best possible way,” Merchant Marine Minister Miltiadis Varvitsiotis said.

But parties of the opposition mocked the law as an ‘outrageous’ endorsement of shipowner interests who, rather than being compelled, are being asked to pay the tax on a voluntary basis.

Syriza-affiliated Avgi newspaper accused the government of bowing before powerful shipping interests.

“The government has made the taxation of shipping magnates a voluntary affair,” the paper’s headline blared.

But there was also plenty of acrimony in parliament where Syriza parliamentary spokesman Thodoris Dritsas likened the merchant marine minister to a ‘shipowner spokesman of sorts’.

“Taxing on basis of tonnage will not garner more than €80 million, in other words, an amount less than what immigrants pay to get entry papers,” he said
“The minister has come here telling us to elevate them [shipowners] to the status of national benefactors just because they will give €420 million over four years,” he added.

Accusing the main opposition of ‘populist’ rhetoric, Varvitsiotis dismissed the criticism as nothing but ‘loud calls creating insecurity’ and called on Syriza to reassure the shipping community that its interests will not come under threat in the event of a change in government.

He justified the voluntary nature of the tax  by referring to parliament’s scientific council that  ruled against a mandatory one.

But critics remain unconvinced, charging that, by citing the parliament council, Varvitsiotis revealed a lack of credible arguments as the council had  never been mentioned in the past to justify dozens of mandatory taxes imposed on the Greek people.