GREAT BAY--Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten has confirmed that a joint technical task force between her ministry and the Ministry of Finance has been established to advance research into a proposed Financial Transaction Tax (FTT), addressing concerns raised by Member of Parliament Ludmila de Weever about coordination between the two ministries and the potential for conflicting economic and fiscal policies.
Responding to De Weever during Friday's continuation of the 2027 national budget debate, Heyliger-Marten explained that the task force will examine the feasibility, economic impact and potential implementation of the proposed tax, in consultation with the Central Bank of Curaçao and St. Maarten and commercial banks.
The Minister also disclosed that the Ministry of Finance has formally requested advice from the Central Bank, which has engaged TEATT as part of its assessment.
The development represents a further step in examining whether a transaction-based tax could form part of a broader restructuring of St. Maarten's taxation system, potentially allowing government to reduce or replace certain existing taxes.
Minister Credits De Weever's Earlier Work
In responding to De Weever, Heyliger-Marten acknowledged that the FTT concept was already being explored in 2020, when De Weever served as Minister of TEATT.
She said the work initiated during that period was now being examined further under her administration, presenting the continuation of the initiative as an example of how policy development can extend across successive governments.
Since then, TEATT has conducted additional exploratory research, drawing on Central Bank payment data and examining whether a transaction-based tax could support wider fiscal reform.
However, Heyliger-Marten cautioned that the billions of guilders flowing through the banking system cannot automatically be treated as taxable revenue.
She said the research must determine which transactions could be taxed, which would qualify for exemptions and how the measure could affect households, businesses, inflation and government revenue.
The Minister reiterated that her objective is not to increase the overall burden on taxpayers, but to explore whether a different revenue model could stimulate investment, entrepreneurship, employment and economic growth while allowing reductions in existing taxes.
De Weever Questions Division Between Economic and Fiscal Policy
De Weever had raised concerns about the relationship between TEATT and Finance, arguing that separating economic policy from fiscal policy can create unnecessary complications when government seeks to implement economic reforms.
The MP questioned how the two ministries would coordinate their responsibilities to ensure that the proposed FTT receives proper research, assessment and consideration before any decision on implementation.
Her broader concern centered on ensuring that economic development proposals are not pursued separately from the fiscal realities and administrative responsibilities involved in implementing them.
Heyliger-Marten acknowledged the need for cooperation but disagreed with the suggestion that the responsibilities should necessarily be combined.
She explained that Finance is responsible for taxation, government expenditure, revenue collection and fiscal stability, while TEATT focuses on economic development, attracting investment, supporting entrepreneurship, developing industries, encouraging competition and creating employment opportunities.
According to the Minister, the functions are complementary, with economic proposals potentially originating within TEATT while their fiscal implications and implementation require Finance's involvement.
She pointed to Jamaica and Trinidad and Tobago as examples of Caribbean countries where economic development and public finance responsibilities are administered separately.
The critical requirement, she maintained, is effective coordination and a shared economic vision rather than the placement of both responsibilities within one ministry.
Government-Wide Economic Direction
Heyliger-Marten also addressed concerns about possible disagreements between TEATT and Finance, emphasizing that the circumstances of the current administration differ from those of 2020.
She pointed to the government's 2024-2028 governing program as the collective policy framework guiding the administration's economic direction.
The Minister said the fiscal reform being explored should not be regarded as her personal initiative or solely as an agenda of the Democratic Party, but as part of the wider economic development objectives to which coalition partners have committed.
The establishment of the joint technical task force, she indicated, demonstrates that both ministries are working together to examine the proposal.
The proposed transaction tax remains under assessment. No tax rate, implementation date or final decision to abolish or reduce existing taxes has been announced.
Further analysis will be necessary to determine whether such a system could generate sufficient revenue while protecting consumers, businesses and the country's economic competitiveness.
The task force's work, together with the Central Bank's advice and consultation with commercial banks, is expected to help establish whether the concept can develop into a viable policy proposal.
The Minister stressed, in response to MP Darryl York, that government has not proposed a transaction tax of 5% or 10% and that the 5% figure presented was strictly for illustrative purposes. "Our vision is not to tax our people more, but to grow our economy so that government can generate more revenue. We are exploring whether a transaction tax could replace or reduce existing taxes rather than add another financial burden. The feasibility study must assess the impact on minimum-wage earners and lower-income households, including the cost of living. Ultimately, the goal is to ensure that our people are better, not worse under any proposed tax reform."
