WILLEMSTAD - The new legislation on games of chance and the tax on games of chance must go back to the drawing board. This is the opinion of the Social and Economic Council (SER) in its advice. As it is now designed, it misses its goal: good regulation and increased revenue for the government.
Paradoxical, because the Minister of Finance has sent the request for advice with the reference 'urgent', partly in connection with Covid and the requirements set by the Netherlands for liquidity support. But new legislation for the gambling sector is not part of the Dutch conditions for liquidity support, says the SER.
In addition, the stated income that the government wants to achieve for the treasury of 115 million guilders in the first year, and then rising to 215 million in 2024, according to the SER, are insufficiently substantiated and are in fact a shot in the dark.
False argument
The SER thinks that the government is especially in a hurry with the new legislation to quickly generate more tax revenue for the state treasury because of the dire situation as a result of the pandemic. But the High Council of Advice finds that an improper argument.
As the law has now been put together, it remains to be seen whether it will generate money, according to the SER. The government has not studied this.
Misplaced
According to the SER, it is even inappropriate to link the introduction of this new legislation to the Covid pandemic and the resulting economic problems of the country of Curaçao.
The need for modernization has existed for much longer, and the pandemic with all its negative financial consequences cannot, in the opinion of the SER, be used to implement insufficiently well-considered and hastily drafted regulations. According to the SER, this leads to irresponsible consequences with no financial benefit for the country.
Scope of i-Gaming
The SER considers it a loss that the financial section and elsewhere in the explanatory memorandums to the law lack information about the current size and contribution of the i-Gaming industry.
As a result, no comparison can be made with the expected income. In the representation of the current income, in the opinion of the SER, not only the income directly obtained from issuing the permits should be included, but also the indirect income arising from the establishment of companies in Curaçao.
Tax system
The SER also finds it highly implausible that Curaçao can start collecting before the system of permits, supervision and facilities is in order. The government thinks it will be able to raise money quickly, while there is no robust tax system to realize this.