A PYMNTS Company

Vestager Asks Italy To End Port Tax Exemptions

By  |  December 9, 2020

Italy’s ports being exempt from paying taxes go against the EU’s rules on State aid and equal competition. The country must, therefore, abolish its exemption, said Competition Commission Margrethe Vestager.

Ports pay no corporate taxes and are free to spend their tax savings at their own discretion, under a system that has been in place for decades. According to the results of the Commission inquiry, this system must be amended over the course of the next 12 months.

“EU competition rules recognise the relevance of ports for economic growth and regional development, allowing member states to invest in them,” Vestager said in a statement.

The Danish official added, “At the same time, to preserve competition, the Commission needs to ensure that, if port authorities generate profits from economic activities, they are taxed in the same way as other companies.” 

“Unjustified corporate tax exemptions for ports distort the level playing field and fair competition. They must be removed,” she concluded. Belgium and France were on the receiving end of a similar decision in 2017.