Parliament’s Committee of Finance is set to discuss tax reform measures and government’s vision for such with Finance Minister Ardwell Irion on Wednesday. That should be a good opportunity to learn more about related plans, including those in a so-called “country package” of restructuring measures agreed on with the Netherlands as condition for much-needed COVID-19 crisis liquidity support.
Some, such as an 8% tax on direct imports (online purchases), a property tax for non-residents and levying turnover tax on gambling winnings, have already been announced. However, it will be interesting to learn of any others.
As reported on Monday, now that a 12.5% civil servant benefits cut as requirement for the earlier-mentioned financial assistance has been removed, public sector unions want their members’ pending cost-of-living adjustments too. Also on Monday, the Committee for Financial Supervision CFT warned that the government in Philipsburg must soon indicate how it will compensate for the 2019 and 2020 current account deficits.
In the same newspaper, St. Maarten Hospitality and Tourism Association (SHTA) told the new Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) that the average room occupancy last December had been 2% less than that of the same month a year earlier. Concern was expressed about the upcoming low season and lack of marketing funds compared to other destinations including the French side.
On top of that, Prime Minister Silveria Jacobs announced in the Friday/Saturday edition that adjustments needed to be made to balance the 2023 budget as instructed by the Kingdom Council of Ministers RMR. She added, “Of course, we have to do what we have to do to generate the revenues and so we are asking the general public to be aware of the changes that will come to ensure that we can meet our obligations towards the population of St. Maarten.”
If the latter sounds a bit scary that’s probably because it is, especially as agreement with The Hague is yet to be reached on refinancing the Dutch soft loans set to mature later this year. The country’s financial woes going back to Hurricane Irma in 2017 and even before are thus far from over.
But that goes for the economy as well, with an obviously still-fragile recovery. Great care is therefore advised not to overburden the private sector under already difficult circumstances.
Balancing immediate fiscal needs with maintaining a conducive business climate can be like walking a tightrope. But, then again, nobody said governing was easy.
