Luxembourg has issued a draft regulation that would reduce shipping registration duties. The duties are computed by reference to a vessel’s tonnage, determined when the ship is first registered in Luxembourg.
Although Luxembourg is a landlocked country without a historic maritime tradition the Luxembourg Maritime Act of 1990 established a shipping register. The Maritime Commissioner has the responsibility for the management of the shipping register.
In Luxembourg the registration levy on shipping is computed according to the tonnage of the ship. The government considers that for this reason the rates charged at present have the effect of placing a burden of tax on owners of larger vessels, and they are less likely to choose to be registered in Luxembourg’s shipping register. The new rates of registration levy will remain relatively high in comparison to those charged in other countries but will penalize larger vessels less heavily thereby potentially increasing the number of ships that are registered in Luxembourg. The ships will have to at least 50% owned by EU nationals or by companies located in the EU.
