WILLEMSTAD – MFK Member of Parliament and former Minister of Finance Javier Silvania is questioning why police officers have been excluded from the tax exemption on overtime introduced under the Bion Law, despite what he says were expectations created during the last election campaign.
In a letter addressed to Minister of Finance Javier Cooper and Minister of Justice Shalten Hato, Silvania says the current situation has led to growing dissatisfaction within the Curaçao Police Force (KPC), where officers have reportedly been informed that they do not qualify for the overtime tax exemption.
According to Silvania, Parliament approved the Bion Law on March 6, 2025. The legislation, an initiative of MFK, was designed to reduce the tax burden on overtime for workers in both the public and private sectors by exempting up to 40 hours of overtime per month from income tax under certain conditions.
The measure was intended to encourage employees to work overtime by allowing them to keep a larger share of their earnings. Before the law was introduced, overtime pay could be taxed at rates of up to 46.5 percent, meaning that in many cases more than half of an employee's overtime compensation went to taxes.
The law applies to employees in the public sector as well as workers in private industries such as supermarkets, hospitality, cleaning services and private security.
However, Silvania says police officers have now been informed by the Human Resources Department (BPD) that the law does not apply to them, leaving many officers disappointed.
"The police are of the opinion that during the election campaign several MFK politicians created the impression that they, too, would benefit from the exemption," Silvania wrote.
Income threshold
Silvania explained that under the current legislation, employees qualify for the tax exemption if their gross annual income does not exceed ANG 85,753.20.
The income calculation includes salary, vacation pay and bonuses, but specifically excludes overtime compensation and standby allowances.
Employees earning above that threshold are not eligible for the tax exemption.
According to Silvania, the exclusion of police officers has created uncertainty within the force, particularly because many officers believed they would benefit from the new legislation.
Seeking government action
In his parliamentary questions, Silvania asks whether Minister Cooper intends to use existing legal mechanisms to resolve the issue or whether the government plans to amend the legislation.
He specifically asks:
- Whether the Minister of Finance intends to use the law's hardship clause to extend the exemption to police officers.
- Whether the government will submit a proposal to Parliament to amend the Bion Law.
- If either option is being considered, when implementation can be expected.
- If not, how the Ministers of Finance and Justice intend to address the concerns raised by police officers.
Silvania argues that the issue should be resolved as quickly as possible to restore confidence among officers who routinely work significant amounts of overtime to maintain public safety.
Broader concerns
The parliamentary letter forms part of a broader appeal by Silvania for measures aimed at improving the financial position of police officers.
In addition to raising questions about the Bion Law, the former finance minister also expressed concern about the financial difficulties faced by some officers, warning that economic hardship could negatively affect morale within the police force.
His proposals include immediate administrative measures to address the overtime tax issue as well as longer-term reforms aimed at improving the financial well-being of police personnel.
The ministers have been asked to provide written responses to the parliamentary questions within a reasonable timeframe.
The discussion is expected to continue in Parliament as lawmakers debate whether the Bion Law should be interpreted differently or amended to ensure that police officers receive the same overtime tax benefits as other eligible workers.