ATHENS, Jan 21 (Reuters) – Greece’s prime delivery foyer on Thursday rejected a European Commission name for the federal government to reform its delivery tax system, saying this might damage a key driver of the crisis-hit economic system.

Shipping is a crucial generator of earnings for Greece, accounting for about 7 % of its gross home product and using about 200,000 individuals.

Last month, the Commission urged Athens to raised goal its tonnage tax system, citing competitors and EU state support guidelines.

But Greek shipowners, who’re more and more fearful the Commission’s options might damage a sector already battered by the worldwide stoop in demand for dry freight commodities and document low freight earnings, rejected the proposals.

“There is no effective distortion of competition in the maritime field in the EU,” the Union of Greek Shipowners stated.

“Any fundamental changes to the institutional and fiscal framework in which the Greek shipping community is presently operating, would have unforeseeable consequences which would be detrimental not only for Greece but also for the rest of the EU.”

On Dec. 21, the Commission stated it was “concerned that favourable tax treatment is also extended to maritime sector intermediaries and operators of ships, which do not provide maritime transport services” comparable to insurance coverage intermediaries and maritime brokers, in addition to the shareholders of delivery firms.

Fishing vessels, port tugboats and yachts ought to pay an ordinary earnings tax, it added giving Greece two months to tell the Commission whether or not it agreed on the proposed measures.

If Athens consented, the Commission would verify it in a brand new state support resolution and the brand new guidelines would come into impact from January 2019 on the newest, the Commission stated threatening in any other case to open a proper state support investigation.

But the union warned that the proposed measures could encourage relocation of firms exterior Europe.

“The EU may lose a substantial part of its fleet and maritime cluster,” it stated. (Reporting by Renee Maltezou, modifying by Jonathan Saul and David Evans)

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