EU Ruling on Malta Tonnage Tax Would Impact All Member States

Malta ship registrar general Ivan Sammut has said that the EU's evaluation of the country's tonnage tax regime would affect all member states.

Fairplay reports:

EC tonnage tax ruling ‘will impact EU cluster’

Any action by the European Commission on Malta’s tonnage tax regime would have an impact on the whole European maritime cluster, the flag’s registrar general Ivan Sammut told IHS Maritime yesterday.

The EC is 18 months into an investigation of the Maltese tax, expressing concerns that the scheme may benefit categories of owners who do not themselves operate shipping services, such as banks and other financial institutions.

“Any measures required by the EC will need to be taken by the flag administrations of all EU countries. We are not talking just about the Maltese regime but of future EU policy,” he explained.

Sammut added that all the positions adopted by the Maltese flag administration during the investigation were drawn up in consultation with the whole shipping industry to ensure its interests were protected.

“Since the investigation began we have moved a long way and found a lot of common ground with the commission, with better understanding on both sides,” he said.

Quizzed about the commission timetable regarding its ruling, Sammut said an announcement was likely soon: “We do not have a clear indication of when the EC will complete its investigation but there is a strong indication that we are approaching that date because so much common ground has been established.”