WILLEMSTAD - The Ministry of Finance announced that the deduction right of 4.5% sales tax (OB) will be maintained until the ABB (general spending tax) legislation is introduced on 1 January 2021.
As is known, the government has so far borrowed 126 million guilders from the Dutch government to support companies and self-employed people through the NOW scheme to maintain jobs.
However, the support for those who have lost their income and welfare recipients was funded by the Curaçao government from its own resources. In order to continue to guarantee support for this vulnerable group, the government has made a decision to start the process of eliminating the deduction right of 4.5%. This decision has now been withdrawn by the government.
The Dutch government has made commitments to also make funds available through loans to financially support the group that has lost their job or are looking for work and welfare recipients.
Many have approached the government in recent days to ask whether the OB deduction right has indeed been abolished, as companies are raising their prices, claiming it is because the government has abolished the tax deduction. For the sake of clarity, the deduction right of 4.5% OB will be maintained until the moment the law on ABB enters into force.
