KRALENDIJK/ORANJESTAD/THE BOTTOM – The island councils of Bonaire, Sint Eustatius, and Saba have jointly expressed strong objections to the proposed 2025 BES Islands Tax Plan. The executive councils fear that the proposed tax measures will have a negative impact on the local population and businesses.

The islands are frustrated that hardly any fundamental considerations were made in the lead-up to the proposed measures, which were drafted under former State Secretary Marnix van Rij. “While the tax plans for European Netherlands and also in the political debates in the House of Representatives and the Senate extensively focus on purchasing power effects and target groups, it seems that for Caribbean Netherlands, policies are being made off the cuff,” states a letter sent to the Ministry of Finance in The Hague.

The letter, which is exceptionally detailed in its response to almost all proposed measures, was signed by the executive councils and also sent on behalf of the respective island councils and the Bonaire electoral college.

The main objections focus on the proposed increase in wage and income tax, which was drafted without an adequate purchasing power analysis. The islands are also concerned about the abolition of exemptions for employees, which, according to them, fails to adequately consider the limited social safety nets in the region.

Additionally, plans to increase property tax for hotels and shorten investment facilities face resistance, particularly because these measures, according to the islands, do not sufficiently consider the unique economic conditions of each island and the vulnerability of their respective economies.

Thorough Analysis

The islands insist that fiscal policy changes should be based on thorough analyses of the local situation, similar to the approach in the European Netherlands. Without this careful consideration, they fear severe negative consequences for their communities.