The European Commission has opened an in-depth investigation to examine whether the Maltese tonnage tax scheme is compatible with EU state aid rules. On the basis of available information, the Commission has concerns that the favourable tax treatment allowed by the EU Guidelines on state aid to maritime transport, for the transport of passengers and freight by sea may have been extended to other categories of beneficiaries that are not suffering from the same handicaps, and are therefore not entitled to lower taxes. The opening of an in-depth inquiry gives interested parties the possibility to comment on the measures. It does not prejudge the outcome of the investigation. “The Commission acknowledges the contribution of the maritime transport sector to the EU economy. Given the high exposure to competition from third countries offering favourable tax treatment to their shippingcompanies, the EU allowed the possibility to reduce taxes for maritime transport activities. In the Maltese case, the support measures apply to yachts, bankers, ship lessors, amongst other beneficiaries. This seems neither justified from a competition perspective,nor appropriate in times of high budgetary constraints.” said Joaqu