SER submits report on Curaçao's proposed US$75 entry tax
Curaçao's Social and Economic Council has advised on a proposed US$75 entry tax for non-resident visitors, with lodging turnover-tax relief.
Curaçao's Social and Economic Council, SER, submitted an advisory report to the Minister of Finance on Wednesday 28 October on a proposal for an entry tax on visitors who do not live in Curaçao. The proposed standard levy is US$75 per visitor per stay, payable when the stay begins, according to the council.
SER said the proposal would replace the existing 7% turnover tax on short-term lodging covered by the measure. The government aims to simplify short-stay taxes and make collection more efficient, the council said.
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Reduced rates are proposed for children under 16, residents of other Caribbean islands in the Kingdom of the Netherlands and people born in Curaçao. Students meeting conditions in the draft legislation would be exempt, according to SER.
Under the explanatory memorandum, revenue would first finance the Curaçao Tourism Development Foundation. Additional funds would go toward further increases in benefits under the General Old Age Insurance scheme, known as AOV, and any remaining funds would finance research into Curaçao's tourism capacity.
SER said it received the request for an expedited report on 4 September. It reviewed the draft legislation, explanatory memorandum and tourism-sector data, including economic, social, financial, legal and implementation issues. The council also considered tourism taxes elsewhere and Bonaire's experience with an entry tax.
The council consulted the Ministries of Finance and Economic Development, Fiscal Affairs officials, the Curaçao Tourism Development Foundation, and lodging-industry associations CHATA and CASHA. SER adopted its report at an extraordinary plenary meeting on 23 October.
File photo: Dietmar Rabich / Wikimedia Commons · CC BY-SA 4.0 · cropped, SXM Today mark added
