Simplified road tax payment system in place by January Tuitt: We need half a billion guilders to run government

POSTED: 09/27/12 11:51 AM

St. Maarten – Long lines at the Receivers Office on Pond Island may be reduced if the road tax system is passed in time for its proposed January 2013 implementation.

The law to change the road tax has been prepared and now it is being reviewed, Finance Minister Roland Tuitt said yesterday.

“Once it is reviewed and approved by the Council of Ministers, then it will start to walk its way to the advisory council and then parliament. We hope to have that done before year end and at least that one will be able to go into effect as of January, 2013.”

Some of the features of the new road tax system will see customers receiving a payment advice or bill via mail or the internet to pay their road tax. They will then be allowed to take the bill to any commercial bank or to pay from behind a computer at home.

Standing in long lines to pay road tax annually has been a source of distress for many citizens and in many instances erupted into fights between frustrated people. Apart from a hassle free experience, Tuitt is also promising that the requirements such as an updated insurance and inspection before the road tax can be paid, will be eliminated.

“The law takes those things into consideration. We are trying to put back the responsibility where it belongs. The Receiver doesn’t have anything to do with police work. If police work has to be done, it has to be done by the police and not by the receiver. That is the reason why we are trying to simplify it for the population and let the responsibility rest where it belongs,” Tuitt stated.

An entire revamp of the tax system is planned for January 2014 where the Ministry of Finance plans to move the island from direct to indirect taxation. On previous occasions, Tuitt stated that there will be no new taxes but he indicated on Wednesday that a possible amendment could be made to the way the so called condo tax is administered.

“That tax is calculated on a weekly basis. So if someone stays less than a week they fall out. Because of that there is a movement to change it to a daily basis. That law is also being prepared by the inspectorate and we hope to have that soon. Those kinds of changes will go into effect January 1, 2013 if they clear parliament before year end.”

Placed on tight reins by the board for financial supervision (Cft), Tuitt says that government needs at least half a billion guilders to run the country properly. Taxation may be able to get them part of the way.

He explained: “We are looking into which taxes we can change and which ones we can adapt. As I said before whichever tax system we come up with, it has to generate at least more than what we are getting now. The compliance rate is low. If that is true then we can get the compliance rate up and the new tax system will be reasonable and more in tune with our economy. If we can generate between 500 to 550 million guilders then that is what government will be looking for. To run the government you need about a half a billion guilders.”

Did you like this? Share it:
Simplified road tax payment system in place by January Tuitt: We need half a billion guilders to run government by

Comments are closed.