In the current situation a role is reserved for the tourism bureau CIB and the tax apparatus, but by introducing a sales tax for the hotels, the tax department itself is entrusted with the levy and exemption of the revenues, said interim-minister of Finance, José Jardim.Every tourist now pays 7 percent room tax per room. An exception is often made for larger hotels from (international) chains; they are granted exemption. It is unclear whether the same percentages in the draft proposal will be maintained. “We are yet to check how the sales tax percentage lies to the room tax”, said Jardim.

 

The sales tax differentiation is a correction on the existing legislation. “Mistakes dating from several years will be corrected, among other things adjusting the fact that the Netherlands Antilles no longer exist”, Jardim explained. Sales tax differentiation means that a higher sales tax percentage is levied on luxury products and products harmful for health or the environment, such as alcohol, tobacco and fireworks. The list is drawn up on the specific situation of Curaçao. Simultaneously, the motion adopted by the Parliament last year to make fruit and vegetables free of sales tax will be implemented. Jardim: “That motion was never implemented.”

 

The draft proposals fro the differentiation of the sales tax is currently in preparation. He expects to receive these later this week. Especially quantifying the financial-economic consequences is taking longer than expected, said Jardim. The proposals will then be established in the meeting of the Council of Ministers – in all probability even this week. The Council of Ministers discussed the proposal for the land-tax last month and forwarded it to the Advisory Council and SER for advice.

 

Personnel

 

Jardim also expects considerable retrenchments within the government apparatus. The government costs could reduce with 20 to 30 million guilders. The government had had an inquiry conducted into all operational commitments from the government apparatus. With this the government has a total picture of where the money under contract is going to. At the moment, the overlaps are being identified for efficiency reasons. Jardim: “There used to be two administrative apparatuses. Few synergy projects were implemented after 10-10-’10 to gear the two apparatuses to each other.

 

For instance, there’s a surplus on copy machines and official cars.” Certain contracts could therefore be terminated (earlier). The financial and legal possibilities to achieve this are being studied.

 

The telephone expenses could be reduced substantially as well. The costs could go done drastically by classifying telephone calls within the government apparatus as internal calls, by means of a VolP-system. “The endeavor is to economize several million there in the coming years.”