WILLEMSTAD - Curaçao’s tax debt backlog has continued to rise, reaching 3.3 billion guilders by June 2023, even after the government forgave claims from 2017 and earlier. In January 2023, outstanding tax debt stood at 2.6 billion guilders, but the total increased by 700 million guilders in the first half of the year.
The Ministry of Finance had previously argued that writing off 3 billion guilders in older tax claims would allow for improved collection of more recent dues. At the time, Finance Minister Javier Silvania assured that this move would reduce outstanding claims. However, the rising backlog highlights ongoing challenges within the Tax Department, whose restructuring has progressed slowly. This reform is part of an agreement between Curaçao and the Netherlands, tied to the country’s COVID-19 support package.
As reforms lag, concerns over Curaçao’s ability to manage its tax system and meet financial obligations have intensified. The government now faces increasing pressure to address these collection issues more effectively, aiming to prevent further debt accumulation.