PHILIPSBURG--St. Maarten Hospitality and Trade Association (SHTA) said Sunday it hopes Government implements “biometric punch clocks” (time clocks) in all government departments so civil servants, who “cannot account for their time are simply not paid.”

 

“This implementation alone will bring the payroll controls of Government in line with the times and the investment will pay for itself within the same year,” said SHTA in a press statement. “Now that this topic has been floored during the budget discussions, we hope that a plan of action is made to implement biometric punch clocks.”

 

Payroll is Government’s highest single expense, as it is in many businesses, SHTA said. “Proper internal controls over time and attendance, enforcement of ‘no work, no pay,’ will immediately result in a major reduction of payroll expense to any organisation, public or private,” it said.

 

SHTA said it was “pleased” with the “more businesslike approach” of the William Marlin Cabinet, in particular Finance Minister Richard Gibson.

 

The largest employer representation body signalled its agreement that the turnover tax (ToT) is “damaging the growth of our economy and motivates local businesses to purchase from overseas rather than from the local vendors.”

 

Gibson declared in last week’s Parliament debate on the draft 2016 budget that ToT was damaging to businesses and the economy.

 

“Finally, we get confirmation that the ‘temporary’ increase of the ToT (as of February 11, 2011) from three per cent to five per cent actually resulted in a detriment to the coffers of the country and resulted in a contraction of the island's economy,” SHTA said.

 

On tax reform, SHTA said it had been advocating for “many years” the implementation of a tax system “that works for the economy instead of against it.” The system should spread the tax burden “in an even and fair manner, while simplifying the filing process, which in itself has been proven internationally to increase compliance,” it said.

 

Dealing with tourism, SHTA said the country’s one-pillar economy “can no longer depend on ad hoc and word-of-mouth marketing. … A structured and well-executed plan of approach to increasing our tourism-based economy needs to take shape urgently.” SHTA thus reiterated its call for an independent tourism authority “so that in times of political change, the economy can stay a steady course.”

 

SHTA “remains available to assist” in public-private partnership to implement the tourism authority which will “undoubtedly result in an improvement to the fiscal position of the country and a lower tax burden for all.”

 

Discussions such as on ToT and tax reform in Parliament have “echoed our previous suggestions and recommendations with respect to cost savings and revenue improvements,” said SHTA. “The goal of SHTA’s suggestions is always the same: To ensure that by keeping a lean Government apparatus the tax burden that is passed to individuals and businesses is always kept at the lowest possible level.”

 

The Daily Herald