KRALENDIJK – Bonaire’s Executive Council is urging the Dutch government to take swift action to offset rising prices caused by the ongoing conflict involving Iran, warning that the situation is placing increasing pressure on households and the island’s economy.
According to the island government, the surge in global transport and energy costs is directly impacting Bonaire, which relies heavily on imported goods. As shipping becomes more expensive, prices across the island continue to rise, making it increasingly difficult for residents to make ends meet.
The Executive Council warned that the developments could significantly erode purchasing power and negatively affect economic stability.
Among the measures proposed is a reduction in fuel excise duties, from USD 31.86 to USD 15.00 per hectoliter. However, similar calls for lowering fuel taxes in the Netherlands have been met with criticism from experts, who argue that such measures tend to benefit higher-income groups the most.
The island government is also advocating for a temporary suspension of ABB (general expenditure tax) on freight costs. Officials argue that taxing higher transport costs places an additional burden on residents at a time when living expenses are already rising.
“The current situation is unfair,” the Executive Council stated, noting that the government should not generate additional tax revenue from a crisis that is already affecting the population.
Bonaire, however, does not have the authority to adjust these taxes independently, as they are regulated under the BES tax framework by the Dutch government. This limits the island’s ability to implement immediate fiscal measures.
While local authorities can adjust certain municipal levies—such as visitor taxes, which primarily affect tourists—they stress that broader relief measures require intervention from The Hague.
The Dutch government has indicated it will not take immediate action but will first assess the full impact of rising oil and gas prices before introducing targeted support measures.