St. Maarten Government projects 120 million in Turnover Tax revenue this yearPOSTED: 06/13/11 1:06 PM
GREAT BAY – The St. Maarten government collected nearly 12 million guilders in turnover tax for the first time in April. This is the first time they achieved the monthly average they projected on their way to collecting 120 million guilders from this tax for the year 2011.
The new rate was introduced on February 15 and the first increase in what is collected over the previous year was observed in March. This was followed by the “on the dot” collection of 12 million guilders in April.
A review of revenue for May shows that there was a fall off. This apparent fall off may be due to the fact that not all the bank statements had been booked, when the figures were compiled for presentation to St. Maarten Parliament.
The minister has also announced that he’ll release a circular in the coming days to tell businesses that turnover tax should be incorporated into the prices and not listed as a separate charge. This separate listing began at the start of 2011, when the rate of turnover tax went to five percent.
The circular will be released because the St. Maarten government has no other way to ensure that the law is followed unless the law is amended. The circular will state, “Under the term “total compensation received” as referred to in article 1, first paragraph, under g of the turnover tax ordinance, shall be understood, all compensation received concerning the delivering of a good or provision of a service, including the turnover tax to be passed on to the consumer.”
According to St. Maarten Finance Minister Hiro Shigemoto, “This expresses that the turnover tax is supposed to be discounted in the total price and therefore should not be indicated separately on the bill, invoice, receipt or other proof of payment.”