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Problems pile up for Greek boatbuilders as taxes bite

center_img New Valley school lets students pick career-path academies ATHENS, Greece (AP) — At its height eight years ago, George Kranitis’ family-owned shipyard in Patra, Greece’s third-largest city, employed some 35 people and sold around 340 boats annually.But after years of biting recession, Kranitis has had to fire almost everyone at the 10,000 sq. foot (3,050 sq. meters) yard.And if that wasn’t enough, things just got a whole lot more taxing — literally. Here’s how to repair and patch damaged drywall So the fate of the boating industry resonates far and wide in Greece.“Greece is a yachting paradise, a place where everyone likes to have a small boat,” said Greek Tourism Federation chief George Vernicos who also heads his own yacht business.Anyone thinking of raising some cash to make ends meet by selling a boat will struggle as the sales tax has also been increased by a whopping 10 percentage points to 23 percent — that’s unlikely to encourage buyers.Opting to hold on doesn’t come cheap. The owner of a 33-foot (10 meter) speed boat valued at 16,000 euros ($17,600) would have to pay 2,080 euros annually. For a 33-foot sailboat or yacht valued at 28,500 euros that comes with accommodation space for passengers, the amount jumps to 3,700 euros each year.There are some reliefs.For instance, if a boat is declared to be out of use for certain months of the year, say over winter, the tax is reduced accordingly. The vessel’s age can also be taken into account and so can the owner’s — pensioners get a big discount. There’s also a discount for boats made in Greece exclusively out of wood and fashioned according to traditional methods. Patients with chronic pain give advice Clean energy: Why it matters for Arizona FILE – In this Tuesday, Jan. 14, 2014 file photo, a man holds his fishing rod upright near a passing yacht, in Faliro, southern Athens. In order to get its third bailout in five years, on July 2015, Greece’s government has had to introduce a series of economic reforms and austerity measures. One involves the extension of an annual luxury tax to all recreational boats over 16.4 feet (5 meters), so it’s not just your average Catamaran that’s a feature across the countless harbors in Greece. (AP Photo/Petros Giannakouris, File)last_img read more