Cyprus floats automatic ship tonnage tax renewal to buffer sector, says minister

Cyprus has suggested automatic renewals of tonnage tax systems as one of a series of measures to halt defections and bolster the shipping industry hit by European sanctions on Russia, its shipping minister said on Friday.

The recommendation is one of several the island, which has one of the largest shipping registries in the EU, has made to Brussels as part of a sector-wide support package for the oil price cap which came into effect on December 5. It was conveyed to the European Commission this week.

Tonnage tax is a system where ship owners or operators can opt to pay an annual tax calculated on the basis of the carrying capacity of a ship rather than profit. It is subject to reviews by the European Commission, with the present regime in Cyprus's case extended in 2019 for a 10-year period.

"Imposing sanctions is the right thing, but at the same time we need...