Parliament passing the national 2023 budget totalling 495 million Netherlands Antillean guilders while welcome is obviously way overdue and therefore all the more important. Until signed into law, expenditures may continue but according to last year’s figures, so additional commitments could not be entered into.
There won’t be much financial space for such now either, mind you, as deficits are no longer allowed. The end-of-March deadline set by the Kingdom Council of Ministers RMR as advised by the Committee for Financial Supervision CFT in any case appears to have been met.
Nevertheless, the legislature gave its approval – by the narrowest of margins – with the first quarter practically gone. This automatically limits the effect of certain steps including cost-saving and/or income-raising measures during 2023.
As a matter of fact, many planned reforms including some of the “country package” agreed on with the Dutch government are still being worked out and will be incorporated later via amendments. Much that is likely to make a significant impact on the population consequently remains rather vague.
For example, estimated revenues are up 5.8% based on – among other things – projected economic growth, enhancing fiscal compliance and taxing home-sharing activities. The latter should generate an extra NAf. 5 million.
It was also mentioned that a special tourist tax will produce NAf. 10 million, details of which are yet to be released. Considering that St. Maarten’s average room occupancy from November through February was only 6% higher than over the same period a year ago, this needs to be handled with great care.
There was an interesting report in last Thursday’s edition on the Aruba Hotel and Tourism Association (AHATA) going to court over a hike in that island’s tourism levy charged via accommodations from 9.5% to 12.5%. Lack of preparation and too little implementation time, resulting in guests already having paid their stay with the old tariff, were the main arguments.
Closely involving stakeholders in these matters well beforehand is essential, also keeping in mind St. Maarten’s own so-called condo tax fiasco. Once bitten, twice shy.
