Tonnage Tax: Is It Working?

The tonnage tax within Europe was perceived as a method of reversing what appeared to be the decline of the maritime industry. The tax legislation had the objectives of increasing tonnage on the registers as well as encouraging the recruitment and training of European sea farers. This paper examines: whether tonnage tax is meeting its objectives, with particular reference to the United Kingdom (UK) situation, and what has been the impact of the legislation on the employment of European sea farers. The results clearly indicate that the introduction of the tonnage tax in the European Union (EU) context has been successful in attracting tonnage but to a lesser extent the number of vessels. These effects are likely to be further enhanced by the EU State Aid guidelines that strengthen the link between flag and tonnage tax. The UK tonnage tax legislation recognized the need to invest in UK sea farers as a method of ensuring a necessary level of maritime expertise within the UK economy. The UK link to recruitment has lead to only a slight increase in cadet numbers and employment opportunities have been concentrated on non-European seafarers.

  • Availability:
  • Authors:
    • Leggate, Heather
    • McConville, James
  • Publication Date: 2005-6

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01004534
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 28 2005 10:56AM