Published On: Wed, Jan 2nd, 2013

Government estimates 1.2 million guilders extra for CTB

WILLEMSTAD – The government estimated 1.2 million guilders extra for the Curaçao Tourist Board (CTB), minister of Finance José Jardim announced last Thursday. “Following the readjustment of the budget, the CTB will have a total budget of 31.8 million guilders for the coming year”, Jardim replied on being asked. The tourist sector feared that the 7-percent room tax charged per tourist, which will be included in the sales tax in the future (the Parliament is yet to approve the enactment, (editorial office)), would possibly disappear in the general means from the government. As a result these monies wouldn’t be used to promote the sector. “It was agreed with the CTB that a management agreement for five years would be signed so that the tourist bureau could make a development plan for the tourist sector”, said Minister Jardim. For the year 2013 CTB will receive 20.1 million guilders on government subsidy and the remaining 11.7 million guilders will come from the room tax.

The government recently announced that henceforth the room tax will be part of the sales tax, thus striving for a more transparent tax system and a levy-technical improvement. In the current situation a role is reserved for both the tourism sector and the tax apparatus but the introduction of the sales tax (ob) for the hotels could create a situation whereby the tax department is in charge of collecting and levying the revenues. A correction on the existing legislation is intended with the sales tax differentiation. This sales tax differentiation means a higher sales tax percentage will be levied on luxury products and products harmful for health and environment.

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