Finnish government plans change to tonnage tax
The Ministry of Finance is drawing up changes to the tonnage tax in an attempt to breathe new life into Finland's shipping industry. But the government and industry representatives have locked horns on the question of how much companies should pay under the current tax system. The current tonnage tax system is based on EU guidelines, and is based on net tonnage multiplied by estimated profits per tonne, calculated and paid on a yearly basis.
Shipping companies are dissatisfied with this system, and are calling for a basic yearly rate that is not calculated from profits. The Finance Ministry's plans are largely in line with what the industry wants.
The two sides do not see eye-to-eye over how much shipping companies should pay out under the current system. Only one small company has adopted it, while the others have racked up 100 million euros in unpaid taxes while they were campaigning for change.
They want the tax debt to be forgiven, something the government is not willing to do.