Published On: Wed, Apr 17th, 2013

Sales tax increase bad for competition

CuracaoWILLEMSTAD - The Curaçao Businesses Association  (VBC) sent a letter today to Parliament on the tax adjustment proposal. The association calls on the Government to dismiss the idea of an increase in sales tax from 6 to 9 percent.

On Friday, Parliament will treat the proposed bill “Adjusting the sales tax” in a public meeting. According to the VBC the introduction of the higher sales tax leads to "deterioration of neutrality in the field of competition”. Especially the wholesaler / importer and tourism sectors will be hit hard. The association wants the government to first discuss other solutions. “This can be done by postponing the public discussions on this issue, " according to VBC.

The association proposes to consider other alternatives which were also presented by the Social and Economic Council (SER) and Association of Curaçao Agencies Interests (BVCA). "Among others they recommended the following measures:. Increase the special import duties on gas, increase tax on cigarettes and alcoholic beverages and / or abolish tax exemption for casinos." In addition, the VBC is of the opinion that the whole sales tax system must be restructured.

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