ATHENS: Greece-shipping-ship-ownersGreece’s world-leading shipping industry is coming under increasing pressure to carry a big part of the new taxes the new bailout agreement requires. The Greek government has agreed to raise taxes on the long-protected sector of shipping, “a part of Greek culture that it has tax breaks enshrined in the constitution,” a Wall Street Journal report says.
The shipping industry is dominated by a small circle of family run companies that control almost one fifth of the world’s shipping fleet, putting Greece’s trademark in all seas. Greek shipping has been a badge of pride for the country. However, the economic crisis has made shipowners more of a target than recipients of public admiration.
“The country’s shipping community must be ready to lift the heaviest of burdens to help the country out of the economic crisis,” Merchant Marine Minister Thodoris Dritsas told a gathering of owners in January, shortly after the left-wing SYRIZA party took office, says the WSJ report. But industry executives and supporters say higher taxes threaten to drive away a business that employs more than 200,000 people and contributes around 7.5 percent of Greece’s gross domestic product. By comparison, tourism directly contributes about 600,000 jobs and 9 percent of GDP.
