Wage and turnover tax remain the mainstay of government revenue

GREAT BAY – Wage tax and turnover tax remain the mainstay of revenue for the government, also in 2018. For the next budget year, the Ministry of Financeprojects of gross domestic product to increase from 1.9387 billion to 1.9581 billion.

The revenue from wage tax is projected to bring in 143.4 million guilders this year, but for 2018 the budget projects almost 4 million less: 139.6.

Wage tax revenue represented 8.8 percent of GDP in 2008, but next year it will drop to 7.1 percent.

Turnover tax is another structural source of income. In 2010 it was 79.5 million guilders but after the increase in the tax from 3 to 5 percent it jumped to 111.7 million in 2011. In 2014 turnover tax revenue peaked at 140.5 million a number that remained more or less stable for the next two years, but in 2016 it suddenly dropped steeply to 132.5 mllion.

For this year, the government expects to collect 138.2 million and 2018 must set the best score since 2011 at 143.9 million guilders. The Finance Ministry has budgeted the increase based on the expected effects from improved tax compliance.

Profit taxes show a mixed picture over the past ten years. So far, 2009 was the best year, with 45.6 million in revenue and 2012 and 2013 were the low points with 22.2 and 22.1 million respectively.

This year the government expects to collect 35.8 million in profit tax and for next year the projection is 34.6 million.

The profit tax tariff is 34.5 percent. Revenue is influenced by tax holidays, investment facilities and fiscal units.

The overview of revenue from excise on unleaded fuel gives a candid insight into fuel consumption on the island. Between 2008 and 2018 (projection) it hovers between 32.9 and 34.8 million liters over the past three years fuel consumption has been around the 34 million mark. In 2016 consumption dropped almost 2.5 million liters compared to the previous year to a flat 34 million, but this year it will go up to 34.842 million and next year to 34.849 million.

Revenue from fuel excise will remain almost flat at around 10.1 million guilders this year and in 2018.

Transfer tax brought in around 14 million in the years 2008 to 2011, but in later years it dropped to a low of 7.1 million in 2014. Last year transfer tax revenue perked up a bit to 12.7 million, but this year the government expects to collect 8.7 million and next year 9.9 million. Revenue from motor vehicle tax is projected for 2018 at 9.3 million guilders.

Room tax will almost double in 2018, due to the increase of the tariff from 5 to 10 percent. In 2016, room tax revenue hit the 10-million guilders mark for the first time, after meager years between 2008 and 2001 where it stayed under 4 million guilders.

This year the government expects to collect 7.4 million but next year the treasury counts on 14 million guilders.

While the timeshare fee goes up as well – from $50 to $100 per week – it does not show in the projected revenue. This year the timeshare fees contribute 4.12 million to the budget and the projection for 2018 is 4.1 million.

Source: TODAY http://today.sx/local-news/wage-turnover-tax-remain-mainstay-government-revenue/