Philipsburg:--- Minister of Finance Hiro Shigemoto met on Monday with the soon to be established New Tax Reform Committee to discuss a plan of approach for the reform of the countries tax system by 2012.Minister Shigemoto said the meeting that took place is part of the austerity package that was approved by the Council of Ministers in order to develop a tax system that takes into consideration the current economy.
"The country is at the crossroads. We have to have a balanced budget; and in order to balance that budget, we had to present an austerity package that includes over Naf.30 million in costs cutting measures and raising revenues by over Naf.40 million.
"Besides the aforementioned, stakeholders that I have consulted with to date have been informed that the increase in Turn over Tax is a temporary measure which would allow us over the next 12-months to develop a tax system that is tailored made to our socio-economic development," Minister of Finance Hiro Shigemoto explained on Monday.
The meeting was organized to outline the steps to be taken and the involvement of stakeholders in the process.
"We want a tax system that is fair, simple, and progressive. The aim is to increase compliance as well. With our new tax system, there are many expectations in the business community as well as for the general public to have an efficient and effective system in place that covers our public sector expenses and services rendered to the community.
"It is imperative that the new system is in line with agreements made with Kingdom partners. Transparency of this process is key and Government wants as large a consultation as possible. The Government website (www.sintmaartengov.org) will be an avenue to be used to allow members of the public to provide suggestions about the new tax system for the country," Minister of Finance Hiro Shigemoto said on Monday.
The Department of Fiscal Affairs has prepared a plan of approach which will guide the process.
Some of the issues to be dealt with are also the relationship with the North side of the island where double taxation is concerned and the exchange of information with the neighbouring islands.
"There is no ideal tax system, but with the input of all stakeholders, unions, business sector and members of the community, I am very confident that we will come up with a system that best suites our needs and requirements as a country," Minister Shigemoto concluded.
Members of the New Tax Reform Committee are Acting Secretary General of Finance Sherry Hazel, Senior Policy Advisor Ruth Boyrard-Brewster, Cedris Josepa and Sissy Fung from Fiscal Affairs and External Fiscal Attorney Judith Brewster, Inspectorate of Taxes Maria Bass, Island Receiver Minerva Gumbs, Economic Affairs Dijkstra, and representing the Head of Finance Cassandra Royer-Wilson.
