Watercraft owners in Greece will now have to pay a new levy – the so-called recreational and day boat tax or TEPAI – on top of the luxury tax they already pay.
A levy to be imposed on all types of sea craft as foreseen in a bill to be tabled by the Greek shipping ministry will further burden the sector and discourage marine tourism, sector insiders told Kathimerini daily.
Boat owners are required to pay an annual 13 percent special luxury tax on the value of their vehicle. The new levy, aiming to reduce the number of boats docked at ports, is expected to further burden owners of small vessels (seven meters or more).
According to Greek daily Kathimerini, the TEPAI tax will apply per month or year as follows: 16 euros per month for craft up to eight meters, 25 euros for those between eight and 10 meters, and 8 euros per meter for vessels over 12 meters. A 25 percent discount will apply only on boats used exclusively for professional purposes.
The tax, which was passed into law in 2013 but never implemented, is now a basic requirement of Greece’s bailout program demanded by its international lenders and forecast to generate 15 million euros in annual revenue.
“We believe that instead of raising revenue for the state, the levy will result in very significant losses, irreversible I would say, due to the immediate departure of vessels from Greece to other areas,” Greek Marinas Association President Stavros Katsikadis, told Kathimerini.
“Greek and foreign pleasure craft owners, who trust Greek marinas as permanent hosts, will seek other neighboring ports in Croatia, Turkey, and Albania to avoid the annual tax,” he added.