Stylianidis for coastal ferries: The ongoing fight for price control and VAT reduction – 2024-07-31 11:13:04

Stylianidis for coastal ferries: The ongoing fight for price control and VAT reduction
 – 2024-07-31 11:13:04

Prices for ferry tickets of conventional ships are stable and slightly decreasing, and increased on high-speed ships and intra-island connections said today the Minister of Shipping and Island Policy Christos Stylianidis. The minister even emphasized that there are thoughts in the government about reducing the VAT for cars.

In his answer to a question from a Member of Parliament in the Parliament, Mr. Stylianidis emphasized that due to the increased interest of the Mitsotakis government in connecting even the last island throughout the year, the total expenditure of the state budget increased from 90 million in 2019 to 154 this year. Mr. Stylianides also announced that he is in contact with the companies in order to extend the special discounts and offers on the ferry tickets.

As he stated“a negotiation is taking place with the Ministry of Finance in order to harmonize the VAT imposed on Private Use vehicles and machines, based on the European Directive 2022/542”. He even referred to the recent letter he addressed to the Competition Commission, with which he requested closer cooperation and the investigation of a specific complaint for possible illegal behavior (concerted practices, etc.).

And he added: “At the same time in my capacity as a former Commissioner of the European Union I struck at DG Competition and I confess to you that there are disappointing indications that either I or the Minister of Finance will be able to move forward.”

The Minister of Shipping and Island Policy characterized as the decisive contribution of the Price Observatory, which is being carefully designed and in the coming days will be fully operational and public. He even filed in the Minutes a recent Report, in the form of a Weekly Press Release, in which the average weekly fare prices and their maximum prices on indicative connections are recorded, for the period from 06.03.2024 to 06.09.2024.

Mr. Stylianides stated that companies have an obligation to inform the Ministry, within 3 days, for each price adjustment and for applying the maximum prices to the barren lines. As part of the control of their obligation from 01/06/24 to 19/07/24, 1,456 checks were carried out and 21 cases of irregularity were confirmed.

The Minister noted, however, that in terms of competitive conditions, the Greek market does not yet belong to the mature markets. As he pointed out “it has been observed for many years that foreign companies do not attend all tenders. This happens because of small margins for profit, but also because of the particularity and requirements of the Greek seas”.

And he concluded: “We must operate within the framework of European directives and European legislation. I belong to a generation that lived through what the Soviet model and existing socialism means. There is a possibility that if we go to such a logic and have a ceiling for everything, we will end up controlling the gross profit but not having products. And I, as the Minister of Shipping and Island Policy, never want to see islands not having connectivity neither with mainland Greece nor with the other islands.”

Source: RES-MPE

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