Mandatory registration & boat tax

[scubaman]

In 2007 a new law was introduced here in Finland, that made it mandatory to register all vessels longer than 5,5 meters or with a bigger engine than 20 hp.

This was to improve the search and rescue services and to aid in the recovery of stolen boats.

This week, the new government announced that there will be a boat tax that aims to collect 100m euros from the boat owners (during their 4 year term, I'm guessing based on the way the other figures were presented very briefly). To put the figure in context, the current car tax produces about 800m annually so this is not an insignificant amount considering the number of boats/cars around.

We have seen the results of similar taxes in other european countries, it will be very interesting to see how they plan to handle this.

Edit: I just found a reference that the aim is to collect 50m annually.

 

[Tranona]

Somewhat similar proposal here a few years ago in the review of financing of navigation services (lighthouses, buoys etc) where commercial shipping make a contribution but leisure vessels are exempt. Fortunately rejected on the grounds of complexity and cost exceeding all benefit. But of course the amount of money expected was low and no doubt the subject will come up again in the future when government looks for new sources of tax revenue, but hopefully the cost of registration and collection will deter them.

 

[longjohnsilver]

In 2007 a new law was introduced here in Finland, that made it mandatory to register all vessels longer than 5,5 meters or with a bigger engine than 20 hp.

This was to improve the search and rescue services and to aid the recovery of stolen boats.

This week, the new government announced that there will be a boat tax that aims to gather 100m euros from the boat owners (during their 4 year term, I'm guessing based on the way the other figures were presented very briefly). To put the figure in context, the current car tax produces about 800m annually so this is not a insignificant amount considering the number of boats/cars around.

We have seen the results of similar taxes in other european countries, it will be very interesting to see how they plan to handle this.

Edit: I just found a reference that the aim is to gather 50m annually.

Doesn't sound good. I'd guess that there are more than 16 x the number of cars compared to boats in Finland so the tax will exceed what you pay in car tax.

Governments, civil servants, no thought as to long term effects.

 

[superheat6k]

So in Finland there is clearly a market for boats especially designed at 5.4m long that sail sideways. I presume there is no restriction on the beam !

 

[alt]

Didn't we already pay a tax on our boats? VAT I believe it was called.

Not good news, K. I feared the same in Ireland but there is so little leisure boats here, I feel it would be counter productive.

 

[Pinnacle]

K

Move to Fra with a UK flag. No taxes then!!

jfm will assist with berthing........

 

[Deleted User YDKXO]

Stupid stupid idea. Boat taxes all over the world have proven to hit the local economy for far more than they actually collect. Don't these boneheaded politicians ever learn?

 

[Whopper]

For between 50 and 100 million I would guess the cost of collecting the tax would likely negate a lot of the positive net monetary benefit.. That's before you consider long term costs like capitalised values of such public sector workers pensions etc etc.. Crazy

Edit: 100m during a 4 to 5 year term?? Madness

 

[scubaman]

I think this was introduced as a sort of solidarity tax by the new right wing government to gain acceptance to the new austerity measures. It was instantly labeled as a 'tax for the wealthy' by the media. Only the thing is that the vast majority of boats belong to ordinary working families, who use them for fishing and visiting the summer cottage.

As I said, It'll be interesting to see how they plan to implement this.