WILLEMSTAD – The Social and Economic Council (SER) has raised serious concerns about the potential socioeconomic consequences of the Curaçao government’s plan to significantly raise various administrative fees, public space charges, and service-related costs. While the increases may be justified from a financial, legal, and policy perspective, the council stresses the need for a more thorough analysis of their impact on vulnerable populations and smaller businesses.
The proposal by the Pisas cabinet would adjust tariffs for services such as passports, ID cards, driver’s licenses, marriage registrations, building permits, and official extracts from the civil registry. The last time these fees were updated was in 1992, and the current proposed adjustments are based on the 2019 price index—before the COVID-19 pandemic. This could result in fee increases of up to nearly 100 percent in some cases.
Retribution fees, which are paid for services such as market stall rentals or garbage collection, and precario charges—levied for the use of public spaces like café terraces, street signage, or construction materials placed on sidewalks—are also included in the government's proposal.
SER acknowledges that fee adjustments are long overdue but warns that blanket increases could disproportionately affect both low-income residents and small enterprises. An estimated 30 percent of Curaçao’s population currently lives below the poverty line, making them especially vulnerable to sudden cost hikes.
The council suggests that a more nuanced, income-sensitive approach is both defensible and, given the economic conditions, potentially urgent. For micro-businesses, the increased costs could hit harder than for larger companies. SER therefore recommends sector-specific exemptions or a gradual implementation period to reduce the shock.
To mitigate the impact, SER proposes that at least 5 percent of the additional government revenue generated from these increases be allocated to a “social compensation fund.” This budget would help offset the financial burden for those most at risk—both individuals and small businesses.
In conclusion, SER warns that without proper accompanying measures, the proposed fee hikes could have serious negative effects on Curaçao’s most vulnerable households and small enterprises. It recommends a phased implementation—such as 40 percent in the first year, 70 percent in the second, and full implementation in the third—to allow more time for adaptation and avoid sudden financial strain.
