THE HAGUE — Bonaire, St. Eustatius and Saba made a fervent plea this morning not to make any more changes in the proposed tax system for the islands.
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However, they did agree to the proposal from the committee Netherlands Antilleans and Aruban Affairs to have the Minister of Finances Jan Kees de Jager make further calculations on the consequences of the changes and parts of the current proposal.
"If one would still want to implement changes three months before the new tax year in whichever country in the world, there would be a question of a disaster. Why would that be different in our case?" Deputy Chris Johnson of Saba summarized the main objection.
The changes regard amendments from the PS and the VVD. The SP wants to introduce a 15-percent tax on profits and the property tax in the current proposal. According to the SP-member Ronald van Raak this would yield more revenues, but also avoid tax competition with Curaçao and St. Maarten, who also want to implement a 15-percent tax on profits. Van Raak applauds this because it would end the tax paradise for international companies, which according to him, the Antilles are.
The delegation members were of the opinion that the Lower Chamber should not let Curaçao tell them what has to happen with the small islands.
"Why do Curaçao and St. Maarten not adjust their own tax system?" says Deputy Jopie Abraham of Bonaire. "The tax package is supposed to be in balance. We have to review the entire package if we introduce the tax on profits, because Curaçao and St. Maarten also have other regulations that we do not have."
Deputy Roy Hooker of St. Eustatius protested. "We have negotiated this long enough. If the Netherlands represent us then they should listen to us – not to Curaçao." Hooker also said that the property tax in the current proposal would probably yield more revenues than the tax on profits, at any rate in the case of oil company NuStar – the largest employer. "However, I am also concerned about the small companies who also have to pay 15 percent, whilst we want to create a middle class. Help us develop our economy", says Hooker.
The second amendment is a proposal from the VVD to increase the tax rate for higher incomes from 30.4 to 38 percent. Abraham and Deputy Anthony Nicolaas could agree with that to some extent, if something in any case could be done with the extra revenues for the group of senior citizens (over-60) who will be worse off with the new system. Johnson and Hooker stated that with an extra rate, one could no longer speak of a simple tax system, something one had always assumed. Johnson remarked it was exceptional that actually a liberal party such as the VVD comes up with a proposal for tax increase. "The other parties are going to use that against you", he said jokingly.
The parties agreed to ask Minister De Jager for further calculations. "The amendments can count on our sympathy, because the money has to come from somewhere. However, the population must profit financially. It is a grim outcome if the senior citizens (over-60) receive less" according to Ineke van Gent (GroenLinks).
The NAAZ-Committee will consider the answers from De Jager and the input of the three islands in the consultation next week Monday and subsequently vote on the law next Wednesday.
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