Philipsburg:--- Minister of Finance Roland Tuitt announced on Monday during an extra-ordinary press conference that vehicle owners can begin paying their road taxes immediately. Minister Tuitt said the road taxes can be paid directly at the Receiver's Office, at the various banks, or via e-banking. Minister Tuitt said that nothing much has changed.
However, persons who choose to do their payments via the bank or e-banking would have to answer some supplementary questions. Those paying via the bank and e-banking would have to fill in their names, address, date of birth, identification number, crib number, license plate number, and the type and model of vehicle.
Minister Tuitt said while the new system is into effect, the law on the changes is not yet finalized. He said just recently the advisory council submitted their advice to government and as soon as the adjustments are made to the new law it will be sent to Parliament for their approval. Tuitt made clear that even though the law is not yet finalized owners of vehicles can pay their road taxes as of now.
Tuitt Attacks UP Leader Theo Heyliger --- "Theonomics".
The Minister of Finance also took several jabs at the leader of the United Peoples Party whom he said has become very active these past few days. Tuitt said the UP party is very vocal since the opening of the New Year by spreading "doom" for the island. Tuitt said in reaction to what the UP party is saying he has coined a new term for the UP leader Theodore Heyliger, that new term is "Theonomics."
Tuitt said "Theonomics" is built on certain pillars such as imposing more taxes on the people of St. Maarten. Tuitt explained that proof of that could be seen when the UP/DP Government increased TOT from 3% to 5% while they were in office. The Finance Minister said another pillar of Theonomics is creating budget deficits. In the year 2010, the budget deficit was over 30 million guilders, the year 2011 was also over 30 million guilders. Tuitt said for the year 2010 St. Maarten got a windfall with the debt relief from the Netherlands and that was the reason there is a profit of 30 million guilders on the records. The Finance Minister said if the figures are taken as is then one would realize that "Theonomics" has created a debt of 30 million guilders. The Finance Minister continued his explanations of Theonomics by saying they created a bridge to nowhere which will cost each taxpayer $1,342.00. That figure he said he based on a quick calculation if there are 38,000 people residing on the island. Tuitt said the bridge to nowhere has also created an increase in harbor fees which is passed on to the consumers (the common man) that are suffering due to the high prices. The increase on goods and services Tuitt said is directly linked to the bridge to nowhere. Tuitt said when the bridge is completed each taxpayer can say that the bridge to nowhere has cost them $1,342. 00. Tuitt said because of Theonomics the debt of country St. Maarten has increased even though they placed the 51 million dollars the bridge will cost under a separate entity (NV) it is the responsibility of government indirectly especially regarding the loan for the bridge to nowhere. The cost of building this bridge Tuitt said increased the debts the government of St. Maarten has by 51 million dollars. The Finance Minister said when he took office in May 2012 one of the first things he looked at was the insurance and that was placed on public bidding. Due to this procedure, the premiums for vehicles went down by more than 50%. Tuitt said the question now is how was it possible that the premium for vehicles under the UP/DP Government (Theonomics) was double. Tuitt said he wants to know why the UP leader and the UP government did not save the people's money when they were in office. Tuitt said the current government National Alliance/Democratic Party/IND also placed the insurance for the government buildings on bidding and there again they managed to have all the government buildings including the police station insured for the same amount they UP/DP was paying for half the amount of buildings they insured. Tuitt said right now the NA/DP/IND have double the amount of buildings insured for the same price.
COLA Payments to Pensioners Realized.
The Minister of Finance also announced on Monday that the Cost of Living Allowance (COLA) for pensioners were paid before the ending of 2012. Tuitt said the Coast Guards did not receive their COLA payments as yet because there is a technicality with the Coast Guards that has to be regulated before they could receive the additional payments. The Finance Minister said that St. Maarten has to safeguard an agreement with the Dutch Government and when that is finalized then the salary structure for the Coast Guards will be adjusted.
2013 Budget not yet Approved by CFT --- CFT Asks More Questions.
Finance Minister Roland Tuitt said due to some technical issues, the CFT issued a negative advice on the draft budget of 2013. Tuitt said the information his Ministry sent to the CFT was sent late, which was after the CFT made their decision. He said right now the CFT is taking the additional information that was provided to them into consideration after which they would adapt their advice hopefully by next week. Tuitt said the CFT posed questions on the compliance issue but his contention with the CFT is that the current government has an aim which is to increase compliance by 10%. Tuitt said if compliance is increased on a budget of 476 million then the compliance increase will be to the tune of 48 million. He said even though government is aiming at increasing compliance by 10% they only budgeted 20 million for the increase of tax compliance which is less than half they are aiming to collect. He said that with that kind of figures it is clear that after the calculation is done they actually increased compliance by less that 5% in the budget. "The figure might sound big but realistically it's less than 5% of the budget. We are putting structures in place for the increase of tax compliance and various reports were submitted to show how the collection process will take place. These reports were sent to the CFT so they can see how government intends to collect the monies they budgeted for compliance. Tuitt said with the additional information provided to the CFT he hopes that they will change their opinion and advice. The Finance Minister further explained that the CFT believes that St. Maarten should cut the amount by half. He said that the CFT is a bit hesitant because St. Maarten acted like a "rude child" in the past. He said he already indicated to the CFT that the government now in office is not the same and they have a different vision, therefore they should be treated as new and not be blamed for what happened in the past. Tuitt said last year the CFT approved the 20 million that was to be collected on the condominium taxes and they got burned and now they are saying they don't want to get burned again. Tuitt said the increase in compliance is far different from trying to collect monies from foreign real estate owners. Tuitt said even though St. Maarten did not place much focus on compliance they managed to increase their tax compliance by 6 million guilders. He said in actuality the current discussion with the compliance boils down to four million because the CFT themselves believe that St. Maarten could budget 10 million for tax compliance.
The Finance Minister made clear that budgets are estimates and it also based on assumptions and risks must be taken when dealing with assumptions. He said in accounting these risks have to be calculated risks, therefore tolerance has to be exercised based on what is documented.
Tuitt said his government ensured that taxes were not increased neither would the common man will be affected. Tuitt said when government was looking for revenues they looked at the casinos, and taxing alcohol and tobacco sales while increasing tax compliance. Tuitt said that his government protected the common man and instead has been looking for more relief for the people. The Finance Minister further explained that government is currently working on a plan to bring about more relief for people that are making salaries of Naf. 5000.00 or less. He said government is also looking for ways to decrease GEBE prices and other prices within the economy. When asked when the budget will process will be finalized with the CFT so that it can be taken to Parliament, Tuitt said that government has until this Friday to react since the letter was sent to the Kingdom Council. He said the CFT sent him another 16 questions and the answers will be provided early this week so that they could amend their advice.
Tuitt Yet to Respond to SOAB Report on TAXAND.
In relation to the TAXAND investigation, Tuitt told SMN News that he did not send his reaction to the SOAB as yet on their drafted report. He said he was tied up with the budget and the CFT but hopefully by next week he will be able to send his reactions to the SOAB so they could issue their final report. When all of this completed the TAXAND saga will be handled in the Council of Ministers by the end of January 2013.
