WILLEMSTAD – While official inflation figures on Curaçao show a decline and food prices have slightly decreased, many residents continue to feel the opposite. This contrast between statistical data and everyday experience was highlighted in recent figures from the Central Bureau of Statistics (CBS) and echoed in public sentiment.
Robbin Martina, chairman of the Curaçao Importers Association (BVCA), explained that this disconnect is partly due to emotional responses, memories of previous price hikes, and individual financial circumstances. Martina acknowledged that the perception of high prices is valid, even if data shows a modest drop.
“Consumers don’t analyze prices the way CBS does. They look at their wallets and past experiences,” said Martina, who is also an active importer.
Import Duties and Sales Tax Add Pressure
Martina emphasized that importers are constantly seeking ways to bring goods in more efficiently and at lower cost. However, he pointed out that high food prices are not solely due to import costs. Other contributing factors include transportation expenses and cumulative taxation.
He specifically cited the application of sales tax (omzetbelasting) at multiple stages of the import chain as a key driver of rising prices.
The BVCA is currently engaged in discussions with the government to explore ways of restructuring the tax system. One proposal is to eliminate intermediate sales taxes before products reach consumers. According to Martina, this could reduce retail prices without necessarily decreasing government revenue.
“There are creative solutions where consumers retain more purchasing power, and the government still collects sufficient tax through increased consumption,” he said.
High Interest Loans Push Families Deeper into Debt
Martina also raised concern about the ease with which people resort to borrowing under high-interest terms, often without fully understanding the long-term consequences.
“Many individuals take on debt with extremely high interest rates, which only worsens their financial situation,” he warned.
The BVCA is urging both the government and the financial sector to improve public education on financial literacy and responsible borrowing. Martina stressed that even though Curaçao's financial system is generally conservative, too many citizens still find themselves in financial distress.
“That tells us more must be done to ensure social protection and financial awareness,” he concluded.
