WILLEMSTAD – Curaçao’s Advisory Council (RvA) is raising doubts about the government’s revenue expectations from the vehicle license tax in the 2026 budget. While the cabinet projects nearly 35 million guilders in income, the RvA warns that this figure may be overly optimistic.

According to data from the island’s insurers’ association Forensys, only about 95,000 vehicles are currently on the road, despite 135,000 being officially registered. With the introduction of new license plates in January 2026, the official registry is expected to shrink, further reducing potential revenues. Before the COVID-19 pandemic, vehicle tax collections amounted to around 39 million guilders—well above current levels.

The RvA also recommends that revenues from the vehicle license tax not flow into the government’s general budget but instead be placed in a dedicated fund earmarked exclusively for road maintenance. The council noted that while the state collects substantial tax revenue, motorists continue to suffer from poor road conditions and neglected infrastructure.

In response, the government maintains that available funds will be put to maximum use in 2026. The draft budget allocates 50 million guilders for road investments—an amount that surpasses the projected license tax revenues.