92002E0780

WRITTEN QUESTION E-0780/02

by Graham Watson (ELDR) to the Commission

(20 March 2002)

Subject: Tax levied by Greece on private leisure boats

Can the Commission confirm whether there have been talks between the EU and the Greek government on the issue of tax levied on pleasure boats flying non-Greek flags?

If so, what has been the outcome of these talks?

Answer given by Mr Bolkestein on behalf of the Commission

(29 April 2002)

The tax to which the Honourable Member refers is levied whenever a private pleasure boat longer than 7 metres enters the country or approaches Greece's ports, harbours or coast; it also applies to boats flying the Greek flag but not permanently moored in Greek ports. For the purposes of this tax, pleasure boats permanently moored in Greek ports are taken to be those that spend fewer than 30 days a year outside Greece.

The Commission considers this tax incompatible with the provisions of Articles 23, 25 and 133 of the EC Treaty prohibiting charges having an equivalent effect to customs duties on imports between Member States and direct imports from non-member countries.

The Commission can confirm that on 26 July 2001 it followed up its letter of formal notice of 12 September 2000 by sending the Greek authorities a reasoned opinion concerning the tax on pleasure boats introduced by Article 11 of Greek Law No 2743/1999.

On 18 October 2001 the Commission received the Greek authorities' response to the reasoned opinion, which included four annexes.

Examination of these documents shows that the Greek authorities have not complied with the reasoned opinion, though Article 34(1) of Law No 2932/2001 does make a number of substantive changes to Article 11 of Law No 2743/99:

- A tax of 15 000 drachma per metre of a pleasure boat's length used to be levied if it re-entered the country and approached Greece's ports, harbours or coast within 30 days of last doing so. This represented a surtax on boats re-entering within a given period. This tax has now been reduced to 2000 drachma a metre, i.e. to the level applicable on its previous entry. The tax, however, remains payable whenever a boat enters the country and approaches Greece's ports, harbours or coast.

- Pleasure boats taking part in races, training voyages organised by sailing clubs and training schools or the educational programmes of foreign ministries are exempt from the tax, subject to the approval of the Shipping Minister.

- Commercial pleasure craft (carrying up to 49 passengers, with cabins other than the crew's and used exclusively for pleasure trips and/or excursions on a full charter basis), which were not previously subject to taxes, are now.

The Commission is considering how best to follow up the procedure it has initiated.