WILLEMSTAD - In June, the tax authority in Curaçao achieved record revenues that were higher than ever before, according to the Ministry of Finance. While a budget of over 98 million was projected, an impressive 136 million was collected, resulting in an excess of nearly 28 million.
Revenue from premiums also exceeded expectations, with nearly 16 million more collected. Instead of the projected 62 million, almost 78 million guilders were received.
The surplus mainly came from profit tax, totaling around seventeen million, property tax with nearly eight million, and payroll tax with an additional seven million. In addition, value-added tax contributed nearly 47 million, of which over 13 million originated from customs duties on imports.
Structural
Remarkably, 97% of the revenue from value-added tax and 98% of the revenue from payroll tax came from ongoing obligations, such as payments or declarations. Only a small portion of the revenue was attributed to the repayment of old debts, emphasizing the structural nature of these high revenues, according to the ministry.
The increase in property tax revenue is due to the assessments currently being imposed for the year 2023. Alignment is being achieved between the property tax administration of the tax authority and the registration at the Cadastre. It appears that in the past, not all registered properties were subject to property tax. This will result in a significantly higher number of property tax assessments for the year 2023, as well as additional assessments for previous years.
Additionally, social insurance premium revenues in June were nearly a quarter higher than projected and over thirteen percent higher than in June of the previous year.
Improvement
The tax authority is working hard to improve its services and to organize its own administration and processes. This diligent effort seems to be paying off, as revenue figures continue to rise, indicating positive progress. These results are further supported by the compliance activities of SBAB and Customs.