THE HAGUE - Curaçao’s Minister of Finance, Javier Silvania, has come under fire from Dutch State Secretary Zsolt Szabó for independently canceling over 3 billion guilders in outstanding tax debts. Szabó argues that this move undermines an already weak tax morale in Curaçao and goes against the objectives of the Landspakket (Kingdom package), which aims to improve fiscal responsibility and governance in the Dutch Caribbean.
In response to written questions from the Dutch House of Representatives' Committee for Kingdom Relations, Szabó expressed concerns about the tax forgiveness initiative. “The underlying objective of these measures—making tax collection more efficient and reducing backlogs—aligns with the goals of the Landspakket. It is crucial for the functioning of the Tax Department that outstanding tax debts remain manageable and are systematically reduced,” he stated.
Szabó highlighted the potential negative impact of Silvania's proposal on tax morale. “The decision to cease collecting older debts risks eroding the public’s tax compliance and does not align well with the objectives of the Landspakket. Moreover, this proposal is not part of the agreed measures for implementing the Landspakket, and responsibility for the decision lies with Curaçao’s government,” he added.
When asked about the general state of tax morale in Curaçao, Aruba, and Sint Maarten (the CAS countries), Szabó cited reports from institutions such as the IMF. These reports indicate that the tax morale in all three islands still leaves room for improvement. “Tax revenues are consistently lower than expected based on the tax rates and the size of their economies,” he noted.
Szabó also announced that stricter financial oversight would be introduced, referring to the (currently unpublished) evaluation of the Kingdom Financial Supervision Act, which governs financial controls in the Dutch Caribbean.