Philipsburg: --- Leader of Government William Marlin has announced that St. Maarten has withdrawn its request from the Central Government for the 2% turn over tax increase. Marlin said the decision was taken after members of the island council who are currently supporting the current government met and they have decided to abandon the efforts to increase turn over tax. The island leader made clear than none of the members of the island council had really wanted to increase the TOT but they had no choice when trying to meet the deadline of the CFT and to avoid having to take instructions from the Council of Ministers.Marlin when he met with the Prime Minister in Curacao last week he wanted to see if he could have reached an agreement to reverse the revenue sharing with the Central government whereby to have 2% of the said tax to stay on the island while 1% sent to Curacao.
Marlin said he did explain to the Prime Minister that he was trying to find a political solution to the current problem as the Prime Minister had promised to take up the matter with the Minister of Finance who was off island during his visit.
Marlin said so far he has had no communication with the Minister of finance but he was informed of the discussions that took place between the Prime Minister and Minister of Finance through the Minister of Constitutional Affairs.
Marlin said the proposal that was discussed during the meeting was that instead of reversing the TOT sharing agreement or to increase the TOT they are looking into securing at least 15 million of the BRK funds which will be sent to St. Maarten.
Marlin said to avoid any confusion since they had already sent the letter to the Minister of finance to increase the TOT and with the current discussion taking place to secure the monies through the BRK funds the executive council has decided to send a formal letter to the Minister of Finance telling her that St. Maarten has decided to withdraw its request of increasing TOT.
Marlin made clear that even though discussions are taking place and letters are going forward and backward there is no agreement with the central government on how the 13 million guilders needed to balance the 2010 budget will be covered. Marlin said even though time is of essence since St. Maarten has its final discussions with the CFT on June 12 the executive council of St. Maarten is trying to make sure there is full clarity with the sharing of the BRK funds since Curacao already is claiming 75% of the funds totaling 115 million Euros.
Marlin made clear that the National Alliance is not putting a gun at the heads of their coalition partners in the Central government however, they have indicated that if there is a political will the monies that St. Maarten need to balance its 2010 budget can be made available.
The island leader gave examples of the six million guilders that were given to an association created by one of its Ministers for materials for a hospital even though the Central government does not have a hospital.
