CMA CGM Chief Financial Officer Ramon Fernandez said that the “special shipping tax” proposed by the French government in the austerity budget will cause CMA CGM to lose about 800 million euros (about 875 million U.S. dollars) in two years
It is reported that facing a huge gap in the treasury, the French government has targeted cash-rich shipping companies in its latest budget plan – shipping companies that choose to use the national tonnage tax system with an annual turnover of 500 million euros (546 million U.S. dollars) or more will be taxed at 9% next year and 5.5% in 2026.
CMA CGM CEO Rodolph Saade said at the end of last month that the company would actively participate in this tax plan. CMA CGM Chief Financial Officer Ramon Fernandez said in an interview with the media that this new tax will cause CMA CGM to lose nearly $900 million in two years.
Fernandez believes that this tax will put CMA CGM at a “competitive disadvantage”. Fernandez’s remarks indicate that paying 800 million euros in taxes is beyond the expectations of the third largest liner company. Notably, Fernandez also revealed that the company’s ship investments would be harmed if the French government imposed a “one-off tax”
