Witkowski: more than 90 percent of revenue in Poland’s shipbuilding sector is created by private entities

More than 90 percent of the revenue of the shipbuilding sector in Poland is made by private entities, Deputy Infrastructure Minister Grzegorz Witkowski said on Wednesday. He added that companies, in order to increase employment, must maintain a stable order book and offer attractive salaries.

The assessment of the functioning of the 2016 Act on activation of the shipbuilding industry and complementary industries was one of the topics of the session of the parliamentary committee on maritime economy and inland navigation.

– A dramatic collapse in the level of employment in the shipbuilding industry in Poland at around 30 percent occurred in 2009 and was the result of the liquidation of Poland’s two largest shipyards in Gdynia and Szczecin, the deputy minister said. As he added, the liquidation was a direct result of the European Commission’s decision and then the so-called Compensation Act.

As he reported, “after 2009 there has been a gradual increase in employment in the shipbuilding industry with a temporary slump in 2015, but since that year we have seen a significant increase in employment in the shipbuilding industry“.

More than 90 percent of the total revenue of the shipbuilding sector in Poland is realized by private entities; companies, in order to increase employment, must maintain a stable order portfolio and offer attractive levels of remuneration, the deputy minister said.

According to his information, in 2018, the revenue of the shipbuilding sector reached almost PLN 11 billion, and in 2019 it was more than 10 percent higher, approaching PLN 12 billion.

The law envisages applying a zero VAT rate to production, imports, parts and equipment for the widest possible catalogue of vessels (in line with the EU VAT directive). The extension of tax preferences will apply to such vessels as tugboats and deep-sea icebreakers. It is also foreseen to increase the catalogue of new vessels covered by the zero VAT rate.

There is also a possibility to choose between the current 19% CIT or PIT and a new flat-rate tax of 1% of the value of sold production for shipbuilding and ship conversion. It is also envisaged to facilitate the inclusion in the special economic zone status of land on which shipbuilding and complementary production is carried out.

rel. PortalMorski.pl