Tax exemptions for inter-islands cruises

PAPEETE (Tahitipresse) — The Assembly of French Polynesia approved a new tax exemptions program for all inter-islands cruises in French Polynesia.

The bill provides that “every company running one or more cruise ships” can benefit from tax exemptions, financial aid for promotion abroad and for training.

The government of French Polynesia also guarantees that there will be no major tax reforms in the years to come.

MP Antonio Perez from the pro-autonomy Fetia Api party said Tahiti had given away too many financial aids to attract international companies.

Minister of Economy Georges Puchon claimed that these tax exemptions were not “automatically” handed out.

He added that cruises companies will be asked to hire more Tahitians than before.

Princess Cruises, a P&O subsidiary, will take over the two R3 and R4 cruise ships, stranded in the Papeete harbor since Sept. 26 2001, before the end of this year.

One of the ships will stay all year long in French Polynesia while the other one will only stay two months each year in the Tahitian waters.

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