Cyprus considers updating tonnage tax system and pricing policy for ship registration

Cyprus is considering updating its tonnage tax system and its pricing policy for the registration of ships as part of targeted measures to enhance the competitiveness of the Cyprus shipping industry, President of the Republic Nicos Anastasiades said on Friday.

Addressing a ceremony for the 25th anniversary of Fleet Management Ltd, Anastasiades said that enhancing the strategic advantages of the Cyprus maritime cluster remains a high priority for the government, as “we are all aware that our shipping industry operates in a highly competitive global environment, thus requiring stability and long-term innovative planning in order to further evolve.”

Our efforts, he said are “primarily focusing on further strengthening our role in the international shipping arena, consolidating the competitiveness of the Cyprus Flag and providing fruitful conditions for the sustainable growth of our shipping industry.”

“A number of other measures and incentives are also under examination with further targeted actions that will further improve the services and standards we provide, such as, amongst others, updating our competitive shipping taxation framework and the pricing policy for the Cyprus Register of Ships,” the President added.

Recalling that the government proceeded with the establishment of a Deputy Ministry for shipping, heeding the long-standing wish of the Cyprus shipping sector, the President added the various policies the government has promoted has yielded “positive results.”

As the President noted, revenues from ship-management companies in 2018 reached 1.03 billion recording an increase of 9% over 2017, while the gross tonnage of the Cyprus Ship Register has increased to twenty-four point five million gross tons [24.5], the highest figure recorded since 2010.

The President also added that since the establishment of the Deputy Ministry, the number of shipping firms under the tonnage tax system has increased from 168 to 215.

Concluding, Anastasiades assured that “we will continue examining ways of introducing more incentives, also in consultation and collaboration with the private sector, in order to ensure that Cyprus remains at the edge of the competition as a shipping centre.”