Stop the farce on cruise liners

If Euro MP Simon Busuttil gets his way, life on cruise liners will be less bizarrely entertaining than before. This is because he wants the European Commission to streamline regulations on VAT and excise duties charged by cruise liners to boost the cruise line industry in the EU.

Speaking in the European Parliament, Dr Busuttil cited the example of restaurant sales on board ships where clients are charged VAT according to the port of embarkation. Current rules also mean that ships calling at port outside the EU need not charge VAT while they are en route and technically outside the single market.

These rules make life extremely complicated for the cruise liners in many senses. First of all they add to the liners' administrative burden and secondly they act as a strong incentive for cruise liners to register themselves in non-EU ports.

If Dr Busuttil's proposals are accepted by the Commission, the European cruise line business will receive a veritable boost - much to the advantage of Mediterranean littoral states, including Malta.

According to an EP report, the cruise line business generates some €2000 million in income to EU ports and their hinterland.