MP Pantophlet Sends Suggestions on how to Remove Budget Deficit.

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george13082009Philipsburg:--- Member of Parliament George Pantophlet has sent a letter to the Prime Minister of St. Maarten Sarah Wescot Williams with suggestions as to how Government can get rid of the current deficit in the 2011 budget.
MP Pantophlet made the following suggestions which he said will eradicate the Naf. 45 million deficit.
  1. That the government owned companies The Harbor Group of Companies, The Juliana International Airport and Gebe N.V. contribute a collective amount of Ang. 55 million to government coffers.
  2. That the ordinance increasing the turnover tax from 3 to 5% be reversed and set again to 3%;
  3. That some shares of the Harbor Group of Companies, the Juliana International Airport and Gebe N.V. are to be sold to interested companies or persons and have the funds generated used to eradicate the Budget deficit.
  4. That some of the funds from the 7 or 8 CD's (time deposits or fixed deposits) of government containing millions of guilders be used to eradicate the budget deficit.
  5. That the collection for back taxes be eliminated providing they are prior to the year 2006.
The MP said he hopes that these proposals will be given serious consideration as it will also ease the burden on the people of St. Maarten who are being seriously affected by the increase of the turnover tax which has contributed to the shrinking of their income and an increase in cost of living.
Pantophlet also sent a letter to the chairlady of parliament informing her of the letter he sent to the Prime Minister with the suggestions on how to get rid of the budget deficit.
Pantophlet said he is of the firm opinion that government owned companies, such as GEBE, the Harbour Group of Companies and the Princess Juliana International Airport should collectively contribute at least Ang. 55 million to government coffers. If such is not possible then the companies must present audited financial statements as proof of their income.
He said some people might wonder why the additional Ang. 10 million but this could serve as a buffer in the event of unforeseen situations. He also proposed that since these companies are 100% owned by government, some of the shares can be sold to interested companies or persons and these monies be applied to the eradication of the deficit. The turnover tax ordinance that was increased from 3 to 5% can be reversed and set again at 3%. In addition to this government should look into the possibility of reducing the turn over tax further if it is proven that the proposals produces the required results of not only a Balanced Budget but one with a surplus. Remember a member of the Second Chamber said that St. Maarten did not have an economical problem but one of managing. Another option is the funds from the 7 or 8 CD's (time deposits or fixed deposits) these can also be used to address the Budget deficit problem. I don't know if any penalties can be incurred when doing this exercise but I am sure government knows the answer to this question. And finally if I am not mistaken the Committee for Financial Supervision (CFT) had said that the projected income from back taxes was unrealistic and it had to be reduced, hence my suggestion that the collection of back taxes be eliminated providing they are prior to the year 2006. One can only imagine the possibilities if people are afforded the opportunity to have more buying and investment power.