The proposal announced at last week’s press briefing by Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Ludmila de Weever to introduce a levy on remittances is interesting. Already for years there have been complaints that expatriates send too much of their local earnings abroad, which promotes capital flight.
Especially during crises such as the current COVID-19 pandemic or the aftermath of devastating Hurricane Irma, people tend to be annoyed by mostly foreign employees still standing in line at money transfer offices. According to the minister, it regards about 38 million Netherlands Antillean guilders per year, by no means a negligible amount.
The other way to look at this is with pride that St. Maarten has been able to afford so many from elsewhere an opportunity to support themselves and often their families back home. They usually do that not by begging or stealing, but by working hard for relatively modest wages when considering the cost of living on the island.
Nevertheless, a “small fee” as she mentioned to assist the country in its development seems reasonable. This must not be overdone, because the service is neither free nor cheap. It could be an easy yet effective way to raise some funds that would be used to strengthen the economy, without directly burdening businesses and/or residents.
A so-called “sin tax” as suggested by Social and Health Insurance SZV Director Glen Carty in Monday’s paper also falls into the latter category. Every time a possible tax increase on cigarettes and liquor comes up it is argued how popular they are among tourists and especially cruise passengers. This is said to be important particularly for the Philipsburg shopping area, but alcohol and tobacco products are so low in price here compared to in the US and Europe that making these a bit more expensive probably won’t make that big a difference.
Of course, bars/restaurants may pass on the added cost of alcoholic beverages in their drink prices, but the hike should not be to such an extent that these would go up that significantly. Besides, discouraging their consumption along with sugary items could help prevent health problems and reduce medical expenses as pointed out. It is also a way to enhance the contribution to public facilities by visitors, which is another frequently-heard complaint.
If realised in a measured and reasonable manner, these are the kinds of straightforward and simple ideas that can work.
