MP Sarah Wescot-Williams urged the Minister of Finance to seek immediate expert advice from the Central Bank of Curaçao and Sint Maarten on the proposed transaction tax, a measure currently under debate as part of the country’s fiscal reform efforts.
In her letter, Wescot-Williams warned that while the tax has been touted by some as a fix for budget shortfalls, the rates being discussed could have a distortionary effect—raising costs for consumers and businesses and potentially reducing financial activity.
The MP emphasized that any decision on such a tax must be based on technical data, not political convenience. She called on the government to understand the broader economic impacts before moving forward.
Transaction taxes, she noted, have been used in countries like Brazil, India, and parts of Europe, with mixed results—raising revenue but sometimes harming economic growth and inclusion.
Wescot-Williams said Sint Maarten’s reform efforts must be broad and balanced: “We need a tax system that broadens the base, supports growth, and remains fair. The transaction tax should only be considered with clear advice from the Central Bank.”