WILLEMSTAD - Introduction of the general spending tax, ABB, in 2021 will lead to a further contraction of the Curaçao economy of more than 1 percent and a loss of 550 jobs. This is the view of the Social Economic Council, SER, in an add-on about the government's desired introduction of the new tax. This should replace the current sales tax (OB) and should be introduced in the first quarter of 2021.
According to the SER, the introduction of the ABB is estimated to yield about 50 million more. But the SER has many questions about the consequences of the move.
The SER warns that the introduction of the ABB can have a negative impact on purchasing power. In addition, partly due to the current corona pandemic, it could "be counterproductive and ultimately saddle the country with less income and less growth."