The fiscal reform-less reform was voted by parliament early in the morning December 15th, 11 members of parliament voted in favor and 7 voted against, the coalition VS the opposition.
All new measures, became a law, making our life here much more expensive.
The latest bonanza in the Tax Reform Aruba 2023 is a reverse charge system for BBO/BAZV/BAVP in which foreign entrepreneurs doing business in Aruba are not liable for the monthly BBO/BAVP/BAZV anymore. The local entrepreneur becomes liable for it, so if I buy expert services from a Dutch or an American firm, I must turn in 7% of their fee to GOA.
At least that is how I understood it.
The local entrepreneurs will report the BBO/BAVP/BAZV due by the foreign entrepreneurs on their tax return and will pay the BBO/BAVP/BAZV due.
It will have a huge effect of the cost of doing business here. I believe that in the past a similar arrangement existed but the responsibility was on the foreign firm, which mostly ignored it, now that charge can no longer be ignored.
But it is to no avail. We heard in parliament a few days ago about the conduct of a former minister. He was just doing the same, as all other ministers and parliamentarians. Traveling business class, collecting expenses, making maximum use of privileges, paid for by the working citizens of Aruba.
BUT that is small change compared to the financial liabilities created by GOA spending much more than it should, and investing so little, when we need investment, plus delivering such poor performance in service to the public.
They did it, they raised taxes, to try cover all costs. The raise of about 30% was needed because GOA’s expenses experienced a hike, keeping in mind record financing costs.
Protest is useless, we will be paying anyway, and our children will too.
If we protested our country’s huge overhead, we would be protesting against ourselves.
