Published On: Thu, Jan 17th, 2013

MFK’s question to the Minister of Finance

WILLEMSTAD – Today the Parliamentary Public Meeting started in which the members of Parliament will deal with the 2013 budget for Curacao. Last Tuesday members of the MFK fraction have received answers to their questions which they asked two weeks ago during the Central Committee meeting.

One of the crucial question was: Which products resort under the category “luxurious products” of which the sales tax will be increased from 6 to 9%.

It is good to note that the Government headed by Premier Hodge wants to increase the sales tax from 6 to 9%. An increase of 3% at once. The answer from the Government was:

As unhealthy and/or luxurious products are the following categories included in the draft ordinance:

  • Alcohol
  • Cars (lease and retail)
  • Jewelry
  • Boats (lease and retail)
  • Computers
  • Cosmetics
  • Soda drinks
  • Christmas trees
  • Lottery
  • Make-Up
  • Mobile telephones
  • Perfumes
  • Recreation expenditures
  • Restaurants
  • Snacks
  • Tobacco
  • Tourism
  • Fireworks
  • Weapons

MFK’s biggest concern is what exactly is Tourism expenditures and Recreation expenditures.

MFK is of the opinion that at a certain moment it becomes to difficult to define the words “recreation” and “tourism”. All products or services that are part of these two categories will be increased with 9% sales tax.

Business owners will go through a tough time, but also the people of Curacao who will see a drastic increase in prices of these products. There will be a fine line between the Luxurious products and the Prime Products in necessities of life.

Cabinet Wiels/Hodge wants to adopt this sales tax law on January 17, 2013 in Parliament. It is good to note that the law was not yet treated by the Social Economic Council. This means that there is no clear view on what effect this will have on the economy of Curacao.

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