KRALENDIJK- The amount on which no tax has to be paid, the so-called tax-free rate, should no longer move with inflation; at least not in a downward direction.

So says Deputy of the Treasury, Hennyson Thielman. According to Thielman, both the BC and taxpayers were surprised at the beginning of this year by a reduction in both the tax-free rate and the so-called elderly person’s deduction. That reduction was indirectly due to the COVID support measures, which would have led to negative inflation.

“But everyone here on the island knows that things like food and rent are only getting more expensive,” said Thielman. The Executive Council is therefore discussing the methodology, which could change in the future.

The reduction in the tax-free rate and the elderly person’s allowance seemed to be at odds with efforts to reduce poverty on the islands.