GREAT BAY--Minister of Finance Marinka Gumbs has confirmed that St. Maarten is not yet ready to begin collecting the proposed visitor tax, although the legislation is undergoing final internal legal review and is expected to return to Parliament during the first quarter of 2027.
The Minister also clarified that the financial transaction tax and echoed Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten's comments that the proposal requires further research and economic analysis, with no government decision taken to introduce it and no projected revenue included in the 2027 national budget.
Gumbs provided the clarifications during the continuation of Parliament's 2027 national budget debate on Monday, November 9, responding to questions concerning the status of proposed revenue-generating measures, delays in implementing the visitor tax and the Ministry of Finance's involvement in discussions surrounding a possible transaction tax.
Member of Parliament Egbert Doran questioned why the visitor tax had not yet been introduced, particularly given previous work undertaken on the legislation. He suggested that approximately 80 percent of the preparatory work had already been completed during the previous administration and asked whether the Ministry of Finance was ready to implement the measure.
In response, Gumbs said the Ministry remains committed to introducing the visitor tax but disputed the suggestion that the legislation inherited from the former administration was close to implementation.
According to the Minister, the draft legislation had been submitted to the Social Economic Council (SER) under the previous administration, which issued its advice in April 2025. However, she explained that the subsequent review identified several legal, technical and operational matters requiring further attention before the proposal could advance.
Minister Disputes Claim That Legislation Was 80 Percent Complete
Gumbs explained that submission of the draft legislation to the SER did not mean the measure was ready for implementation or that most of the required work had been completed.
The Minister identified insufficient stakeholder consultation, unresolved questions concerning the allocation of revenue and incomplete arrangements for tax collection, enforcement and practical implementation among the issues identified during the review.
She said these matters required substantial revisions to ensure that the proposed legislation could be implemented and enforced.
Because of the extent of the revisions and limited technical capacity within the Ministry's Fiscal Affairs Department, a fiscal legislative specialist was engaged to assist with revising the draft.
Gumbs explained that the legislation has since progressed and is currently undergoing its final internal review by the Department of Legal Affairs and Legislation.
Once that review is completed, the draft is expected to proceed to the Council of Ministers before being submitted to the Council of Advice.
The Minister indicated that, based on the Ministry's current planning, she expects to return to Parliament during the first quarter of 2027 for consideration of the proposed legislation.
However, she did not announce a definitive date for the start of tax collection.
Collection and Enforcement Arrangements Also Being Prepared
Gumbs explained that the Ministry is working on the operational requirements necessary to administer the visitor tax once the legislation takes effect.
This includes coordination with the Ministry of Justice and other relevant stakeholders concerning the collection system and the procedures required for implementation.
The Minister emphasized that introducing a new tax involves more than securing parliamentary approval for legislation. Government must also establish the administrative systems necessary to collect the revenue, enforce compliance and account for the funds received.
According to Gumbs, the work undertaken since the previous administration has focused on addressing the deficiencies identified in the original draft and preparing the measure for practical implementation.
She maintained that the legislative process requires government to consider the advice and recommendations received during the various review stages before the proposal can proceed.
The Ministry's current objective is to complete the outstanding legislative and operational preparations so that the tax can be introduced once the necessary approvals and administrative arrangements are in place.
Visitor Tax Part of Wider Revenue Reform
The Minister also addressed concerns about the absence of new revenue-generating measures in the 2027 budget, explaining that tax changes must follow the applicable legislative procedures before government can begin collecting revenue.
Gumbs said the proposed visitor tax forms part of the Ministry's broader effort to modernize St. Maarten's tax system and improve revenue administration.
Alongside the development of new legislation, the Ministry intends to pursue several administrative improvements during 2027, including strengthening taxpayer registration, improving compliance monitoring, expanding digital services and introducing a new business taxpayer portal.
Additional measures are being developed to improve payment processing, the allocation of payments and the administration of existing tax obligations.
Gumbs explained that while larger modernization initiatives will require several years, the Ministry is also pursuing improvements that can be implemented during 2027.
The Minister maintained that the visitor tax remains a priority, but its implementation depends on completing the remaining legal and administrative requirements.
Finance Confirms Transaction Tax Is Still Under Study
Separately, Gumbs addressed the proposed financial transaction tax introduced for discussion by Minister of TEATT Grisha Heyliger-Marten during the 2027 budget debate.
The Finance Minister confirmed that the transaction tax is not currently part of her Ministry's phased tax reform program and that the Ministry is not preparing legislation for its introduction.
She explained that Finance is awaiting further research and analysis based on scenarios to be developed jointly with the Ministry of TEATT.
Her response echoed the position outlined by Minister Heyliger-Marten, who previously told Parliament that the transaction tax was an idea requiring examination rather than an approved government measure.
Heyliger-Marten had confirmed that a joint technical task force involving both ministries was established to examine the feasibility, economic implications and potential structure of the proposed tax. She also made clear that preliminary discussions had not produced an agreed government plan to replace or reduce existing taxes.
The proposal involves examining whether a transaction-based revenue system could form part of broader tax reform, potentially allowing government to reconsider certain existing taxes. However, the economic effects, revenue potential and practical implementation requirements remain subject to study.
Gumbs confirmed that no policy decision has been taken to introduce the transaction tax and that no revenue from such a measure has been included in the draft 2027 national budget.
According to the Minister, a transaction tax could only be considered for a future budget after the necessary analysis has been completed, government has adopted a policy decision and its expected revenue and implementation date can be reasonably established.
Consequently, while the visitor tax has advanced to the legislative review stage, the separate financial transaction tax remains under consideration, with no approved rate, implementation date or legislation currently being prepared by the Ministry of Finance.
