Philipsburg:--- The news broken by finance Minister Hiro Shigemoto on the increase of turn over tax from 3% to 5% to balance the budget is not sitting well with many residents especially the workers on St. Maarten. During a man in the street conducted by SMN News some of the workers felt that government should go after those companies and corporations that owe government monies.Carl Richardson a former employee of Eastern Caribbean Cellular said he believes that government should go after these corporations whom he said is using St. Maarten tax system to their own benefit. Richardson gave an example on the Pelican Resort who recently declared bankruptcy while owing government millions in taxes. Not only that they did not pay their taxes but they fired a number of locals who have been working there for years. Richardson said Pelican was allowed to build a newer resort next door to the old one and they brought in foreign labour. Richardson said government has to become proactive and to force the management of the new Pelican to pay up its back taxes since the owners are the same. He said government must stop the tax breaks to corporations that are just changing hands to their own benefit. Richardson said the 5% TOT will not be borne by the businesses instead it will be passed on to the consumers. Another view for most residents is that government should ensure that the resorts pay up the 5% room tax they are collecting on government's behalf.
Ingrid Davis a vendor at the Philipsburg market place also shared the same opinions when it came to the increase of taxes. Davis said she recently wrote a letter to the Minister of Economic Affairs asking him if government is willing to reduce taxes for the local entrepreneurs. Davis said the bigger companies on St. Maarten are given a five year tax break when they set up shop here while vendors and other locals have to begin paying taxes the day they receive their licences. She said locals have no place to go when business is bad and government should look for ways to cushion its own people. Davis said should government continue with its plans then a number of smaller businesses will close their doors.
In the meantime, banker Jan Beaujon of the Windward Islands Bank said he felt government did well in balancing the budget. Beaujon said while the increase will affect people especially when purchasing certain items, he believes that if good governance is to take its course on St. Maarten then a proper budget has to be in place with the necessary controls. Beaujon said that while these measures are difficult especially when cuts and increases are made it is better when it's done early. The well known banker also feels that St. Maarten has a difficult year ahead but the nation he said is strong and resilient, they have been through major hurricanes and rebounded.While the advisor to the United Federation Union Willy Haize feels that government should hold the Dutch government responsible. "It's time for Holland to shape up or else our people would have to shape them up." Haize said.
Haize said as is, only a part of the population will be paying taxes especially low income earners. He said government would have to increase the cost of living allowances for workers to cope with their day to day expenses. The unionist said he understands that government did not have much time on their hands and increasing TOT was an emergency measure. However, he felt that government must include the tripartite when making these decisions. Haize also called on government to muscle up and to go after the bigger businesses so they too can pay their dues.Businessman Arthur Luguisse said it has been years now that people have been talking about the TOT mostly because most of the revenues derived from TOT went to Curacao and not St. Maarten. Luguisse said the United States has a huge deficit and the people there are against the increase in taxes since it serves as a deterrent. However, if the increase is meant to fill the budget deficit then government should reduce the TOT when they reach their target or peak. Luguisse said sometimes things just have to happen even if it's not in ones interest. Right now St. Maarten has to be looked at as a country and it must be able to position itself where it can make a difference.
