Tonnage tax proposal ‘a positive move’

THE NOW long-awaited tonnage-tax proposal for the South African maritime sector has finally been released by the treasury for public comment. And, although more has still to be done to create the right environment, it is a step towards making SA a more attractive jurisdiction in which to register ships, according to Andrew Robinson, a maritime law specialist at attorneys Deneys Reitz. “It goes back to a White Paper on transport policy in 1997,” he told FTW, “and looks to create a register in SA to boost local ship-owning. “One of the ways to make the register advantageous to shipping companies is to use tonnage tax – a lower tax regime than standard corporate tax.” The treasury said that the proposed regime was in keeping with government's attempts to revive the declining domestic shipping industry.