Frans warns of increase
in GEBE concession fee
~ ‘Government has no direction pertaining to taxation’ ~
PHILIPSBURG--Not only the increase of the Turnover Tax (TOT) by one per cent, but also an increase of NAf. 5 in the GEBE concession fee is coming in 2008. “It seems that government wants to tax the people to death,” National Alliance Councilman Frans Richardson told The Daily Herald.
He also complained about government taxing the people across the board and not having a clear-cut policy on whether to shift to indirect taxation or not.
After the Central Committee of the Island Council received a presentation on the 2008 draft budget on Friday, Richardson said the budget was over NAf. 300 million, but contained almost nothing on country St. Maarten. “The budget is over NAf. 100 million more than the 2007 budget,” Richardson said.
He said he had the impression that government wanted to tax the people to death to raise more money. “Government has no sense of direction about what type of tax it wants: direct or indirect taxes. It seems as if it likes to tax the people.”
He said NAf. 4 million had been budgeted for GEBE to pay government in concession fee. Based on the 17,000 households with GEBE connections on the island, Richardson said the only way GEBE would be able to pay this money was if it raised its concession fee from NAf. 15 to NAf. 20.
“Government continues to tax the people across the board,” Richardson said.
He believes the budget does not reflect the actual figures of what it would take to run country St. Maarten. “The budget should reflect the seriousness of us taking over all tasks and responsibilities of running a country. What we see is a budget increase and more money for government to spend on things that have nothing to do with country status.”
He said furthermore that the same government that had complained about the introduction of the Turnover Tax had asked for a one per cent increase in it.
“The Commissioner of Finance asked for a one per cent increase of the TOT, while asking as well to lower the excise tax on gasoline. Either we continue on the path of indirect taxes or of direct taxes,” he said.
Richardson has his doubts as well about government really receiving the money it hoped from the TOT increase. “We must find a balance of doing it the right way. This is the opportunity to shift the tax system to indirect taxes.”
Richardson said he was in favour of indirect taxation, because this would mean the people would decide for themselves how they would be spending their money.
