Cifa regrets delay tax plan

August 24, 2011 7:04 AM

The pressure group for the international financial services sector on Curaçao, the Cifa, is disappointed that the tax amendments as announced by the government will not be introduced per July 1st, as promised earlier this year by Minister of Finance, George ‘Jorge’ Jamaloodin (MFK).

According to Cifa-chairperson and former premier Etienne Ys, the delay is not conducive to the competitive position of Curaçao as financial trade centre.

According to Ys, the Minister of Finance announced that the tax plan would become effective per July 1st this year. The proposal departs from the sales tax (ob) increasing from 5 to 6 percent and decreasing the profit on taxes and income tax. The latter is particularly attractive for the international financial sector. However, despite the government’s promise, the tax plan will not become effective per July 1st. Although the proposal is currently with the States, it will be discussed in a Central Committee meeting at the beginning of August, after the parliament’s ‘summer recess’. It is unknown when the proposal will be discussed in public. Some believe it will be beginning next year before the proposal is introduced.

According to former premier Ys, the delay of the tax plan will be unfavorable for Curaçao. “If you announce the introduction of something on July 1st, everyone assumes it will be implemented on that date. However, if it isn’t, it damages the credibility. The government cannot permit itself to announce commencing dates that are not realistic.” According to Ys, the fact that the tax plan is still not implemented will only cause more obscurity for the financial sector. “Companies do not know what to expect, whether the announced tax plans will be introduced or not and this makes it difficult for the companies to make plans.”

(Source: National Newspaper Amigoe)

12 July 2011