WILLEMSTAD - Tax revenues rose sharply in the third quarter of this year. Curaçao has collected 341 million guilders in tax revenue in the third quarter. Compared to the same quarter in 2019, realized tax benefits in the third quarter of 2021 amount to approximately 95 percent.
This is apparent from the response of the Financial Supervision Board (Cft) to Curaçao's third implementation report for 2021 that was recently published.
Tax revenues in the third quarter show a remarkable increase compared to the same quarter in 2020. The increase is the result of the economic growth that started after June, due to the revival of tourism. In addition, Curaçao attributes the increase to the effects of the project 'increase tax revenue' and of the waiver scheme.
To gain more insight into the effects of the economic recovery versus those of the tax authorities' recovery actions on the increase in tax revenues, Cft chairman Raymond Gradus asks the Ministry of Finance to make a (global) breakdown of tax revenues by assessment year.
The receipts from special import duties on petrol, an amount of 31 million guilders, have not yet been recognized in income, due to a change in the processing of the declaration. This income statement will only take place at the end of the year. The same applies to the waste tax collected by utility company Aqualectra.
The other income, with a realization of 37 percent, is far behind the forecast. This is mainly caused by the lack of income from ground leases, the lack of interest income for lent funds, the lack of license fee income, and the fact that the intended rate increases for government services have not yet been implemented.
The provisional deficit up to and including the third quarter amounts to 310 million guilders.