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PHILIPSBURG--Increase or create an international transfer fee to be levied on money transfer services such as MoneyGram and Western Union was an instruction from Parliament to Finance Minister Martin Hassink. The motion was adopted by Members of Parliament (MPs) in the Plenary Session of Parliament dealing with the 2015 budget on Thursday evening.
Thirteen MPs voted for the motion.
MP Sarah Wescot-Williams (Democratic Party) voted against the motion, saying she could not support the piecemeal approach to changing the tax system. She preferred a proper reform.
MP William Marlin (National Alliance) was not present in the General Assembly Hall when he was called on to vote.
The motion, tabled in Parliament by United People's (UP) party MP Franklin Meyers, also called for government to start the process to move from direct taxes (e.g. turnover tax of five per cent) to indirect taxes such as a value added tax (VAT) of three per cent on goods to broaden the tax base.
A study on the possibility of lowering the income tax based on the implementation of the VAT was also called for in the adopted motion.
Minister of General Affairs Marcel Gumbs also was instructed via the motion to start the process to fully automate and integrate the information systems of all ministries to prevent tax evasion, illegal employment and for government's information to be complete and accurate. The unlinked automated government systems have "created low tax compliance."
The increase in international money transfer fee and introduction of the VAT aim to boost government's revenues and stimulate the economy, according to the motion.
The turnover tax has "not been yielding sufficient revenue" for government. The tax has proven "difficult to control."
