WILLEMSTAD - Tax revenues for the months of July to October have not been as high since 2017 as this year. That is according to Minister of Finance, Javier Silvania. Since the Pisas cabinet took office on 14 June, increasing tax revenues has been a very high priority. The Minister has set operational objectives for the Inspectorate of Taxes, the Tax Audit Office (SBAB) and the Tax Collector which should lead to a reduction in administrative backlogs and an increase in the country's income. This structured approach seems to be paying off within a few months.
Many business owners who are in arrears in submitting their returns have now had a visit from an SBAB employee. The owners of real estate have received their property tax assessments for the years 2019 and 2020 and a large number of tax debtors have received a reminder or had a bailiff at the door in recent months.
While the recovering economy is contributing to tax revenue growth, that alone is insufficient to explain the increase in revenues to pre-COVID-pandemic levels. The development of the income from social contributions also shows the same positive picture. With effect from 12 July, the minister issued the so-called 'Collection Guidelines'. These guidelines, which have been made public by the minister, provide clear instructions to the collector on the one hand, and ensure that all taxpayers are treated equally on the other.
The directive also provides for a temporary 'restructuring scheme' with which tax debtors can pay off their old tax debts at a discount. This is subject to the condition that the debtor does not build up new debts for a period of 4 years, otherwise the discount granted can be reversed. Given the success of this restructuring scheme, the Council of Ministers recently agreed to extend it until the end of the year. In the coming months, increasingly tougher recovery measures will be used to collect the back taxes. This takes into account the financial capacity of each individual debtor.
Although everyone must of course meet their tax obligations, the stricter recovery measures in the coming period will mainly focus on taxpayers with higher incomes or a lot of wealth. The thinking here is that the lower income groups have suffered the most financially from the COVID pandemic. It is therefore self-evident for the minister that the strongest shoulders should also bear the heaviest burdens during this period. No exception will be made for this. The minister is aware that the current approach also puts the necessary pressure on the employees of the tax authorities and expresses his appreciation for their efforts, which have led to this excellent result.