WILLEMSTAD - According to the Downtown Management Organization (DMO), the package of measures announced by the government will severely damage the economy of the city center and bring it to a further decline. The DMO is against raising the sales tax to 9 percent. They are also against raising excise duties on beer and distilled spirits and extending the deductible period.
The increase in the sales tax rate from 6 to 9 percent will lead to a loss of income among business owners, DMO believes. "Increasing sales tax by 50 percent, without reducing the burden on consumers, results in reduced purchasing power."
The prices for basic living are going up, which leads to lower expenditures on clothing, shoes, makeup, luxury products and eating out.
As the Financial Supervision Board (Cft) and the Budgetary Audit Committee also indicate, the cause of the current budget deficit is largely due to "insufficient budget discipline" and "little or no progress regarding the implementation of cost-reducing measures," DMO continues.
However, two-thirds of the current proposed package of measures is borne by the business owners and not the government. “We, therefore, ask the country to take measures to reduce the cost of the civil service, rather than seeking solutions from the business owners and the consumer.”