Furthermore it is partially in line with recommendations made during the Economic Summit 2009 where the SHTA proposed a complete removal of the tax that was introduced as a temporary measure 13 years ago, as a measure of attaining real economic stimulus in the local economy.
Now that the Executive Council has presented a 2010 budget with a surplus, in which no claim is laid on the portion that remains at the Federal Level (2%), we believe that as of October 11, 2010 the Executive Council should reduce the TOT to 1 % (the portion that remains on St. Maarten) for the remainder of 2010.
Furthermore as of January 1, 2011 the SHTA expects the Executive Council to completely remove the TOT. First and foremost because time has now certainly run out on this temporary measure. Secondly because the devastating multiplier effect of the TOT can certainly not be denied after all this time. And last but certainly not least because it will be the only/one economic stimulus that the Public sector has initiated to alleviate the burden on the private sector and ensure that future economic activity doesn't fall back even further, leaving Government no-one to tax.
