Published On: Fri, Dec 21st, 2012

Sales tax reduction on fruits and vegetables means 5 million less for Government

WILLEMSTAD – With the introduction of 0-tarrif on fruits and vegetables but also on some other products means that the Government will receive 5 million guilders (2.9 million dollars) less in sales tax. But on the other hand, the Government hopes to get compensation by increasing the sales tax on luxury products and products that are harmful to health. This is according to the Minister of Finance, Dr. Jose Jardim.

Last week Minister Jardim announced the first measures which are being contemplated by the Government for the betterment of the financial, economic and social situation of the island. One of these measures is to eliminate sales tax on fruits and vegetables. According to the Minister this is a decision based on a motion adopted by Parliament. This is a way to alleviate the community and promote them to live a healthier life.

According to the Minister, it is good to note that sales tax on import of fruits and vegetables was eliminated.  The consumer must pay the sales tax on the retail price. The Government is going through a tough financial situation thus it is important to find a compensation for the loss of this income.

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