WILLEMSTAD - The Curaçao Business Association (VBC) wants the Curaçao cabinet to reduce taxes for companies. According to the interest group, taxes are too high, preventing the economy from growing further.
According to the VBC, Curaçao has "the most unattractive tax system in the entire Kingdom". Business owners now incur too high costs, says the representative. It would also be an important reason why people who earn around the minimum wage often do not get a higher salary.
“If we look very honestly at our economic situation, we haven't had growth for a long time. We have been contracting for a long time,” says chairman Daniel Hodge. “As a result, the Curaçaoans, per capita, have become increasingly poor over the past twenty years. That's not nice to hear, but it's the truth. This development has been going on for a long time.”
According to Hodge, what exactly the business community wants to change about taxes must be worked out in consultation between the business community and politicians. In addition to the VBC, chairman Billy Jonckheer of the Chamber of Commerce again pleaded for revision of various taxes.
Cabinet will soon come up with plans
Finance Minister Javier Silvania then announced via his Facebook page that the cabinet will soon present a bill to 'modernize' taxes. The minister intends to "substantially" reduce the rates of profit, income and wage tax.
The minister did not want to say what the plans entail. “When the time comes, I will inform the Curaçao community about the changes,” says Silvania in response.
Higher minimum wage in Curaçao
For years, the business community resisted the increase in the minimum wage because of the economic situation on the island. In recent years – partly due to corona – no inflation adjustment has been made.
This year the minimum wage has been increased by 11.2 percent: from 9.62 to 10.70 guilders per hour. This happened on the initiative of Minister Ruthmilda Larmonie-Cecilia of Social Development, Labor and Welfare (SOAW).
The VBC supports this increase, but emphasizes that it is urgent to do something about the high costs for business owners.
VBC will hold talks with the minister of economy
The VBC especially hopes that people will listen to each other more on the island and that they will jointly look at what is best for the economy. “At the end of December we had a meeting with Minister Cijntje of Economic Development. The plans of the government were discussed and we were able to make our contribution. We have already set the dates for the upcoming meetings up to and including the end of 2023,” he says.
Chairman Daniel Hodge was director of the PSB bank and in the first half of 2013 Prime Minister of Curaçao.