Workers Must Keep More Money in Their Pockets!
WILLEMSTAD – Every year, and especially during election season, the topic of taxation and the shift from direct to indirect taxes is widely debated. The key argument is that Curaçao’s tax system needs simplification, and workers should take home more of their earnings.
MAN-PIN’s position on this issue is clear: those who work should receive a higher net income when they get paid—whether weekly, biweekly, or monthly. This means that income tax (LB) and payroll tax (IB) must be reduced. Workers must be able to meet their basic needs, such as eating healthy, having a roof over their heads, access to clean drinking water, hygiene, education, and transportation.
MAN-PIN also believes that those with broader financial means should contribute more through direct taxes, such as payroll and income taxes, based on the principle of solidarity.
MAN-PIN recognizes that the current tax rates are excessively high and that the middle class—the backbone of the economy—bears the heaviest burden. This situation needs to change, as the middle class is calling for much-needed relief. It is unfortunate that there are still many employed individuals who, for various reasons, do not contribute to the government's tax revenues by paying income tax or social premiums. Additionally, there are businesses that withhold payroll taxes and social security contributions from employees but fail to comply with tax laws.
For this reason, MAN-PIN advocates for a comprehensive review and simplification of the tax system, shifting as much as possible from direct to indirect taxation. However, this must be done carefully and strategically, in line with the Vision and Management program of MAN-PIN, to ensure that any increase in indirect taxes does not disproportionately affect low-income earners, those receiving minimum wage, or pensioners relying solely on AOV benefits.
MAN-PIN is convinced that, based on the principle "If we all pay, we all pay less," indirect taxation will generate the same or even higher revenue without increasing the burden on responsible taxpayers.
MAN-PIN also acknowledges that the government's primary revenue sources come from a mix of direct and indirect taxes. Therefore, any reduction in income and payroll taxes must be well-researched and implemented responsibly to maintain a balanced approach. The goal is for more people to contribute fairly while ensuring everyone benefits from economic growth. Any tax reforms must be fair for all.
One thing is certain: any changes to the tax system must not negatively impact essential public services funded by the government budget. MAN-PIN strongly supports eliminating the current Turnover Tax (OB) at various levels and introducing a Broad-Based Sales Tax (ABB) at a single rate. Essential goods and other products that are currently subject to a 0% OB rate will remain unchanged under ABB.
MAN-PIN firmly believes that ABB will not only increase government revenues but will also help lower the cost of living for everyone. Businesses will also benefit, as ABB will reduce administrative expenses, and government oversight costs will decrease.