A part of Watch Media

ShippingWatchSunday29 January 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
22/09/2015at 09:22

Vestager ready to modernize tonnage tax

The tonnage tax is not just vital to European carriers, it also represents a crucial condition in ensuring that the European maritime industry has a sustainable size, explains the EU Commissioner for Competition, Margrethe Vestager, in an interview with ShippingWatch.
Photo: Line Ørnes Søndergaard
BY TOMAS KRISTIANSEN

Without tonnage tax there would be no significant maritime industry in Europe.

Stripped to its essentials, this is the message delivered by the EU Commissioner for Competition, Margrethe Vestager, in her first interview about the framework conditions for the many carriers, suppliers and offshore businesses based in the 28 EU member states.

Try a free 40-day trial subscription to ShippingWatch

The 47-year-old Commissioner, who serves in one of the key positions on the EU Commission, tells ShippingWatch that there are no plans to impair the possibilities of using the tonnage tax, which already constitutes a basic condition for many EU-based carriers. Rather, she is prepared to discuss ways in which to modernize and develop the tonnage tax.

Tools must be discussed

In a few weeks, Margrethe Vestager will have served one year as EU Commissioner for Competition, and at a time when numerous EU member states are making efforts to improve their framework conditions, including the countries' tonnage tax schemes. Denmark is one, Sweden another, and most recently the UK has announced its ambition "to pull out all stops" to keep ships sailing under the Union Jack. Finally, Norway, as a non-EU state, has presented a new maritime plan heralding even better tax conditions for the sector.

Try a free 40-day trial subscription to ShippingWatch

"This is a very concrete discussion that we need to take, about whether to broaden the tonnage tax. Of course, this tax scheme cannot be applied to everything that floats or is thrown into the water. But at the same time, and I'm willing to take this discussion, we need to ensure that the tonnage tax stays modern, as the businesses operating at sea are also evolving. They are in no way at a standstill. So one needs to be open toward discussions on how to use the tools that we agree are legitimate. For instance tonnage tax," says Margrethe Vestager in an interview with ShippingWatch.

Tonnage tax here to stay

The EU Commission's, and specifically Margrethe Vestager's, stance on the question of whether the individual EU nations can introduce attractive tax conditions for the profession are crucial. When a country adjusts and improves its framework conditions for the maritime sector, the EU Commissioner for Competition is the one who will ultimately have to approve the scheme. And this will not happen unless the EU gets something in return, for instance in the form of a certain number of ships registered in an EU nation, and a certain share of European seafarers employed on the vessels.

Vestager's fundamental belief is that the tonnage tax represents the lifeblood of the European maritime industry, and as such, that removing the tonnage tax would be a completely wrong move.

PWC: New net wage scheme in Norway weakens Denmark

"The tonnage tax is here to stay. The form might be up for discussion, but the tonnage tax itself is a good thing and it forms a very clear basis for European shipping."

Doesn't that go against the principles of free competition?

"Yes, but the maritime industry is global with routes that connect the world. And as such, one needs to have a pragmatic approach here, so that there can be a degree of competition within a certain framework. There are many sectors in which participants compete within a framework. These could be in terms of health care or the environment," she explains.

Depends on the state budget

Many stakeholders in Denmark are currently working to expand the country's tonnage tax scheme to cover a broader range of vessels than is the case today, not least in order to secure jobs for offshore activities in the North Sea. Several political parties are positive toward the efforts, but in a recent interview with ShippingWatch, Minister for Business and Growth, Troels Lund Poulsen, stressed that this will ultimately depend on how the numbers in the coming state budget turn out.

The Danish Shipowners' Association estimates that around 600 new jobs could be created if the country's framework conditions are strengthened, and if offshore carriers manage to land jobs related to the heralded North Sea expansion efforts.

The UK enters race to secure optimal framework conditions

Swedish shipowners finally get their tonnage tax

EU will keep a close eye on Maersk Line and MSC  

Related articles:

  • The UK enters race to secure optimal framework conditions

    For subscribers

  • Photo: Gøteborg Havn

    Swedish shipowners finally get their tonnage tax

    For subscribers

  • Photo: Niels Hougaard

    EU will keep a close eye on Maersk Line and MSC

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Höegh Autoliners
Carriers

Car carriers have rarely seen such profits: "We are probably at an all-time high"

After a difficult time during the pandemic, 2022 has exceeded all expectations for car carriers, says chief exec of Höegh Autoliners. Low capacity and electric cars out of China are main factors in elevating prices.
  • Norwegian carrier lands another large gas deal with Germany
  • Höegh Autoliners joins climate coalition

For subscribers

Foto: Markus Scholz/AP/Ritzau Scanpix
Container

Maersk rebrands Hamburg Süd and several other well-known subsidiaries

For subscribers

Foto: Ints Kalnins/Reuters/Ritzau Scanpix/REUTERS / X02120
Tanker

Fredriksen now owns nearly as many Euronav shares as the Saverys family

For subscribers

”Blue Water wants to grow – but it will be with a focus on profitable growth, and we will hold on to our strong values, unique customer focus and high level of satisfaction among both customers and personnel,” states Kurt Skov, founder and departing chair at Blue Water Shipping. | Foto: Carsten Andreasen/Ritzau Scanpix
Logistics

Blue Water founder promises future "focus on profitable growth"

For subscribers

Foto: Tatiana Meel/Reuters/Ritzau Scanpix
Regulation

EU considers capping Russian fuel prices at USD 100 a barrel

For subscribers

Foto: Statoil/AP/Ritzau Scanpix
Offshore

Borr Drilling raises USD 400m to pay off debt

For subscribers

Further reading

Foto: Höegh Autoliners
Carriers

Car carriers have rarely seen such profits: "We are probably at an all-time high"

After a difficult time during the pandemic, 2022 has exceeded all expectations for car carriers, says chief exec of Höegh Autoliners. Low capacity and electric cars out of China are main factors in elevating prices.

For subscribers

Foto: Markus Scholz/AP/Ritzau Scanpix
Container

Maersk rebrands Hamburg Süd and several other well-known subsidiaries

Hamburg Süd will lose its company name and gradually be integrated into the Maersk brand. A number of other subsidiaries face rebranding as well.

For subscribers

”To understand the reasoning behind our decision, it’s important to understand how our current strategy is very different compared to 2015. We now have an integrator strategy,” says Johan Sigsgaard, Chief Product Officer - Ocean at Maersk. | Foto: Maersk
Container

Johan Sigsgaard: Maersk has no ambitions of entering new major alliance

Maersk needs more independence than what participation in the 2M alliance allows for, and the carrier therefore has no intentions of forming a new major box alliance, says Ocean CPO Johan Sigsgaard.

For subscribers

Latest news

  • Blue Water founder promises future "focus on profitable growth" – 27 Jan
  • Borr Drilling raises USD 400m to pay off debt – 27 Jan
  • Income for ice class tankers has surged by 1,644 percent following sanctions – 27 Jan
  • Floating power station to provide energy for one million Ukrainians – 27 Jan
  • Maersk rebrands Hamburg Süd and several other well-known subsidiaries – 27 Jan
  • Car carriers have rarely seen such profits: "We are probably at an all-time high" – 27 Jan
  • Fredriksen now owns nearly as many Euronav shares as the Saverys family – 27 Jan
  • EU considers capping Russian fuel prices at USD 100 a barrel – 27 Jan
  • New partnership to investigate potential human rights abuse at sea – 27 Jan
  • Singaporean competition authorities to probe DSME sale – 27 Jan
See all

Jobs

  • Junior Finance Business Partner - offshore wind industry

  • Chartering Manager for Lauritzen Bulkers A/S

  • Foundation Package Manager - Offshore wind industry

  • Financial Controller for International Shipping Company

  • Senior Lead, Human Sustainability at Sea

  • Copenhagen Shipping Company is hiring a skilled cargo broker

Jobs

  • Junior Finance Business Partner - offshore wind industry

  • Chartering Manager for Lauritzen Bulkers A/S

  • Foundation Package Manager - Offshore wind industry

  • Financial Controller for International Shipping Company

  • Senior Lead, Human Sustainability at Sea

  • Copenhagen Shipping Company is hiring a skilled cargo broker

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge