The US Administration is targeting the cruise industry to pay more tax, claiming cruise lines are avoiding their fare share due to flags of convenience.
New US commerce secretary Howard Lutnick says it is time they paid up and not hide behind ship registrations in foreign jurisdictions.
Lutnick claimed ‘none of them pay taxes.’
“You ever see a cruise ship with an American flag on the back? They have flags of like Liberia or Panama, he told Fox News.
The comments have seen cruise ship stock prices sink.
The big three – Royal Caribbean, Norweigian Cruise Line and Carnival Corporation are all headquartered in Miami but incorporated overseas in Liberia, Bermuda and Panama respectively.
“This is going to end under Donald Trump and those taxes are going to be paid and Americans’ tax rates are going to come down,” Lutnick added.
CLIA responded, saying: “Cruise lines pay substantial taxes and fees in the US to the tune of nearly $2.5 billion, which represents 65% of the total taxes cruise lines pay worldwide.”
