Marigot:--- On Thursday, February 17th, the Territorial Council of St-Martin was convened in session to deliberate on various issues amongst witch the suppression and replacement of the Professional Tax(also called Business Tax). The new system proposed by the ruling UP/UMP government is based on a dual mechanism (a license tax and a levy of fixed assets). This mechanism in fact favors greatly large companies that have for their operations large buildings and lands. On the other hand it penalizes greatly small and very small businesses (which however represents close to 90% of the total amount of businesses in the Collectivité). The Opposition group RRR RASSEMBLEMENT-RESPONSABILITE-REUSSITE, headed by Councilman Alain RICHARDSON, vehemently denounced again, the fact that over the 4 years of existence of the new Collectivité, and here again, the council is called to create, modify and adjust taxes yet no substantial data; no simulations and no evaluation of the various scenarios are presented or offered. The group have declared that, "this blind way of governing after 4 years of UP/UMP government is irresponsible and unacceptable", and have asked "how can the population have confidence in such a government, how can the tax payers understand and adhere when government cannot even evaluate the impact and justify its choices". The group also accused President GUMBS and his group's members of again bowing to the dictate of the French Tax Services , who after imposing the suppression of the "inhabitance Tax" in 2009, now under fallacious excuses (of none operational software to prepare assessments from 2011) has imposed the suppression of the Professional Tax. The group made it clear that with the critical financial situation of the Collectivité, this suppression of 10 million euros of assessed tax (for an average yearly collected amount of 5 million euros) would be a fatal blow for the finances and even the autonomy of the Collectivité. The RRR group denounced another violation of the constitutional autonomy of the Collectivité, that President GUMBS has not even protested against. The group RRR made it abundantly clear that any new tax structure or mechanism destined to replace the professional Tax had to :
Guarantee in 2011 and each year after at least an equivalent level of resources ( tax collected) as the Professional Tax (average 5 million euros)
Guarantee fiscal justice within the business community,
Be an incentive for business creation, development and growth and not another hurdle that discourages anyone (especially our youths) from getting involved in business, and or destroys our people's dreams of becoming entrepreneurs because the greatly needed jobs will come from the private businesses.
Having the interests of the people and of the Collectivité at heart and knowing that if nothing is done it will be no less than 5 million euros that will be added to the estimated 30 million euros, missing to carry out the duties, obligations and services to the population, and to restore the financial credibility of the COM, the group RRR have presented several amendments during the session, all retained, validated and adopted by the council. These amendments will now permits:
The market vendors to benefit from a general rebate of 50%, thus preventing the penalization of this profession (the vendors would have seen their tax more than doubled if the government's initial text was adopted whereas their yearly tax for 2011 is now limited to 200 euros).
Taxis and bus drivers to benefit from a total exemption (as with the Professional tax) while under the government's proposed text they would have been seriously taxed.
All new businesses to benefit of a total exemption on year 1, an exemption of the levy on fixed assets for year 2 and a 50% rebate for year 3. Under the government's proposed text they would have been fully taxed from the beginning.
The Collectivité to collect a minimum amount of tax resources from the larger companies who under the government's proposed text would have seen their contribution substantially slashed. The mechanism proposed by the group RRR now sets a minimum yearly contribution scale based on business sizes (depending of level of yearly sales), this reintroduces more fiscal justice.
Beyond this reform Councilman Alain RICHARDSON in the name of the group RRR, has also presented a tax incentive modification in favor of the fishing sector. In order to assist the fishermen and reduce the cost of fuel, Mr. RICHARDSON has presented and defended an amendment to the Gas Tax law that will grant a total exemption from the government's fuel tax of 6 euros cents per liter for all registered fishermen. The achievement of such a measure for the fishermen as well as those amendments presented and defended in favor of the small business owners in the government Tax reform, while defending the financial interests of the Collectivité, by the opposition group that hold only 5 seats in the council are clear indications and proofs of their effectiveness and commitment serve the people of St-Martin to the best of their abilities and this is in line with their slogan for 2011, "Together, let's make it happen in 2011".