As the tax benefits offered by Estonia to ship owners are more modest than in the neighbouring countries, there are few ships registered in Estonia and only ten% of Estonian seamen pay taxes to the Estonian state – approximately a thousand out of nearly ten thousand, LETA/Postimees writes. President of the Maritime Chamber and MP Tarmo Kouts stated that quick changes are needed in Estonia’s maritime policies in order to change the situation where nearly 90% of Estonian seamen do not pay anything out of their income to the state budget.
The fleet sailing under the Estonian flag consists of some Tallink passenger ships that depart from the port of Tallinn, Saaremaa Laevakompanii ferries sailing between the mainland and West Estonian islands and two small cargo ships of Eesti Merelaevandus while for example the Latvian cargo fleet alone consists of nearly 60 ships.
“A whole 60 cargo ships in management of Estonian residents sail under the flag of some other states and pay taxes to the budgets of these states,” said Kouts. “We need to get these ships back to our registry but for that to happen, Estonia has to make similar concessions as neighbouring states or several other states further away in the European Union.”
Admiral Kouts says that if the situation continues, in five years’ time there won’t be any proper ships in the Estonian registry anymore. Thus the Estonian Marine Advisory Council has made a set of proposals to the parliament, and on the top of the list, there are social and income tax concessions for Estonian ship-owners. The Riigikogu has agreed to discuss shipping industry as a nationally important subject for the first time.
The fleet sailing under the Estonian flag consists of some Tallink passenger ships that depart from the port of Tallinn, Saaremaa Laevakompanii ferries sailing between the mainland and West Estonian islands and two small cargo ships of Eesti Merelaevandus while for example the Latvian cargo fleet alone consists of nearly 60 ships.
“A whole 60 cargo ships in management of Estonian residents sail under the flag of some other states and pay taxes to the budgets of these states,” said Kouts. “We need to get these ships back to our registry but for that to happen, Estonia has to make similar concessions as neighbouring states or several other states further away in the European Union.”
Admiral Kouts says that if the situation continues, in five years’ time there won’t be any proper ships in the Estonian registry anymore. Thus the Estonian Marine Advisory Council has made a set of proposals to the parliament, and on the top of the list, there are social and income tax concessions for Estonian ship-owners. The Riigikogu has agreed to discuss shipping industry as a nationally important subject for the first time.