Greek passenger shipping professionals urge the government to consider exempting passenger ferry services from an increased VAT rate as this would negatively affect the sector’s operation. In its letter sent to Finance Minister Yanis Varoufakis earlier this week, the Association of Greek Passenger Shipping Companies (SEEN) underlines that Greek passenger shipping companies are facing devastating financial problems due to accumulated losses from 2009 that exceed 1.2 billion euros. “A possible increase in tax rates would result to an increase of transport costs for passengers while at the same time traffic will drop”, mentions the letter.
Passenger ferry services should be designated as “emergency services” and therefore charged with a reduced VAT rate, says the Association, emphasizing further on the contribution of passenger ferry services to the country’s economy, considering that 65 percent of passengers are transported by ferries for tourism purposes.
The increase of VAT rates is included in the government’s negotiations with international creditors.