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Tuesday, 21 May 2013 09:12

 

WILLEMSTAD — The loss of revenues owing to the delayed and revised introduction of the differentiation in the sales tax will in first instance be at the account of the entry ‘contingencies’. In the second half of 2013 this will be compensated by adjusting the stamp tax.This is outlined in the Explanatory Memorandum with the first supplementary budget of 2013, following questions and remarks from the Advisory Council. The government reports also to work on possible adjustments of fees and retributions, such as work and residence permits. Furthermore, the government will continue with retrenchment of government staff, which will lead to lower personnel costs.

 

The national regulation, which makes the sales tax differentiation possible, was implemented on May 1st instead of the earlier planned date of March 1st. The government also decided to levy 6 percent instead of the highest rate (9 percent) for certain articles, namely computers and auxiliaries and make-up, trinkets, jewels and jewelry, perfume, scents/eau de toilette.

The Advisory Council also remarked that the Memorandum of Finance for the fiscal years 2013 up to and including 2016 departs from an inflation of 2.1 percent. From a historic and current perspective the Advisory Council finds this a very low percentage and advises the government to check the possibly of adjusting this. The inflation rate on Curaçao is around 3 percent lately.