Tsipras’s proposal Tsipras to impose heavier taxes on speedboats and to triple the tax on dividends revives an old debate.<\/p>\n
There are times when political memory proves to be extremely short,<\/b> but the people do not forget\u2014and how could they, when those who today present themselves as \u201copponents\u201d of wealth, investors, and entrepreneurship, are the very same people who just yesterday had no problem enjoying the hospitality of people belonging to precisely those circles, and indeed in the wake of national tragedies.<\/b><\/p>\n
At the same time, the proposal by Alexis Tsipras<\/b> for harsher taxation of high-speed recreational boats and a tripling of the tax on dividends revives an old debate. Not only about whether such measures would actually generate revenue for the government, but also about who is proposing them.<\/p>\nLuxury… break<\/b><\/h3>\n
It\u2019s hard to forget the former prime minister\u2019s vacation on the luxury yacht \u201cOdyssey London\u201d<\/b> owned by the Panagopoulou family<\/b> just a few days after the tragedy in Mati. This is no ordinary pleasure craft. It is a 34-meter-long yacht, built in 2008 by the Italian shipyard Custom Line, part of the Ferretti Group, with a crew of four and an estimated construction value of 12 to 15 million euros. <\/b><\/p>\n
This amount is equivalent to dozens of homes or hundreds of workers\u2019 annual salaries. The \u201cOdyssey London\u201d was registered in London and flew the British flag, not the Greek flag. In other words, this is not a typical Greek pleasure craft, but one of the international superyachts<\/b> that operate through foreign registries and complex corporate structures. This is precisely where the political contradiction lies. <\/b><\/p>\n
Alexis Tsipras appears today to be declaring a new tax war on \u201cyacht owners\u201d, even as he himself chose to spend part of his vacation on a multi-million-euro yacht that is a prime example of the very world that he and the \u201cELAS members\u201d<\/b> denounce. And, in fact, on a vessel that was not registered in the Greek ship registry but flew the British flag.<\/p>\n
The discussion becomes even more interesting when one looks at what is happening in the real economy.<\/b> A 30- to 35-meter vessel operating in the Greek yachting market can generate revenue each year through taxes, flag fees, VAT, port fees, mooring fees, crew insurance premiums, and other charges ranging from 50,000 to over 200,000 euros annually. Dozens of professionals are involved in the operation of these vessels, ranging from sailors and engineers to technicians, marinas, catering companies, and tourism service providers.<\/p>\n
However, there is yet another factor that those proposing new taxes on boats avoid highlighting. Currently, the luxury lifestyle tax generates approximately 100 to 110 million euros annually for the public coffers. Of this amount, recreational boats account for about 10% to 12% of total revenue, or approximately 10 to 13 million euros per year. <\/p>\n
The question is whether a new tax increase will actually boost revenue or whether it will lead to the exact opposite result.<\/b> Experience shows that boat owners have the option of converting their vessels to commercial use, place them under a charter arrangement, or transfer them to foreign registries and corporate structures outside Greece. <\/p>\n
This is a practice already in use in the market. So if the tax burden increases excessively, it is more likely that government revenue will decrease rather than increase. Fewer vessels registered under Greek jurisdiction means less revenue from taxes, VAT, port fees, levies, and services related to yachting.<\/b> A policy presented as a blow to \u201cyacht owners\u201d may ultimately lead to the loss of even more revenue for the Greek government and the relocation of activities out of the country.<\/p>\nOn dividends<\/b><\/h3>\n
The same logic applies to dividends. The tripling of taxes proposed by Alexis Tsipras does not affect some invisible adversaries. It affects investors, small shareholders, family-owned businesses, and people who reinvest capital in the Greek economy. <\/b><\/p>\n
At a time when the country is trying to attract investment, maintain tax stability, and boost its competitiveness, a return to excessive taxation strongly evokes practices of the past. For years, SYRIZA<\/b>, now known as ELAS, has built its political identity on conflict with the \u201celites,\u201d the \u201coligarchs,\u201d and \u201cbig interests.\u201d <\/p>\n
However, reality turned out to be considerably more complex. The party\u2019s ties to powerful economic actors did not disappear once it came to power. On the contrary, they were often at the center of public debate. The image of a former prime minister being hosted on a yacht worth up to 15 million euros, flying the British flag, and who is now proposing new taxes on boat owners and investors, raises legitimate questions. <\/b><\/p>\n
Not only regarding the effectiveness of the measures he is proposing, but also regarding the credibility of the political message he is attempting to convey.<\/p>\n
The experience of the Greek economy has shown time and again that when taxation exceeds a certain threshold, taxpayers seek alternative solutions. In the case of yachts, these solutions are already well known, and as we mentioned above, this has been a practice followed by a significant number of large yacht owners for years. Ultimately, those in society who understand economics are asking: Whose side is Tsipras on? The elite\u2019s or the citizens\u2019?<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
Tsipras\u2019s proposal to impose heavier taxes on speedboats and to triple the tax on dividends has reignited an old debate.
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