Flagging out threatens EU acceptance of German tonnage taxation

German shipping companies do not meet a number of the European Commission’s fundamental conditions of allowing tonnage taxation in the big seafaring nation. “We try to change the situation”, Max Johns, Managing Director of the German Shipowners’ Association, VDR, tells ShippingWatch.

German shipping companies do not live up to EU demands that 60 percent of the fleet must operate under a European flag. The meeting of this demand is a decisive condition in order for the European Commission to accept member states’ use of the favourable tonnage taxation. So says the Managing Director of VDR, Max Johns.

“The European Commission guidelines put in place a number of conditions which must be met in order for the Commission to accept tonnage taxation. First of all, maritime employment rate must increase and here we are doing very well. Furthermore, the number of ships operation under an EU member state flag must surpass 60 percent and we are not there yet. If a country does not live up to this condition, the number of ships operating under an EU flag must increase. We are promoting the latter condition at present”, Max Johns says.

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