This week, Prime Minister Evelyn Wever Croes announced that the bill for the privatization of RWZI is entering a crucial phase. Now, members of parliament will need to submit their questions on this topic, and the government will then provide answers.
During the press conference on Monday, the Prime Minister stated that there is already a type of tariff stipulated, “but I don’t remember all the details now.” What she did explain was that the amount depends on the size of the room. The impression was that either the Prime Minister wasn’t very involved or didn’t want to go into detail on this matter due to the difference of opinion regarding the chosen method to finance the RWZI operations in the future.
Director of AHATA, Tisa LaSorte, was consulted on this matter and stated that she actually disagrees with the chosen form of tax. There are many holes in it.
She says that those in the hotel sector understand the urgency to solve this problem, mainly at Bubali Plas, because there is a very high risk, as it is in a hotel/tourism area.
“We agree it’s an urgent solution. But it needs to be a correct solution too, not just quick.”
To begin with, LaSorte says, there is no quick solution because this has been a problem for decades that governments have neglected, and now, urgently, a solution needs to be found.
Instead of charging residents and all established companies on the island, including hotels, that are actually using the water, something else was decided. A tax on tourists was decided upon. “If that’s their decision, we’ll see what the options are for the different taxes. We don’t agree with the tax chosen, namely the environmental levy.” She explained that they don’t agree because it’s an extra tax added to the room rate. As it stands now, timeshares pay per week, and hotels and vacation rentals pay per night.
The way it is set up now is not favorable because it cannot easily be removed and it is not measured in percentages. If a hotel decides to lower their room rates during the low season, for example, the tax will not decrease. This form of taxation doesn’t provide any flexibility and even when the company lowers their prices, the amount of the levy remains the same.
Their biggest concern, however, is that this is not a fair solution to the problem. Most of the homes doing vacation rentals will not have to pay this tax. Introducing a tax like this puts all the weight on a small group of companies that do comply with the law and gives more incentive to those who don’t comply with the law. “You’re encouraging the informal economy, something the government shouldn’t be doing.” This is why it would be better to introduce a tax that every tourist pays, and in the end, can be adjusted accordingly.
According to our sources, there’s a difference in what the hotel/vacation rental room levy is compared to that of timeshares. For hotels, they now charge 5.37 florins per night (per occupied hotel room). And Timeshares pay 12 dollars.
In the proposed change, timeshare hotels have a difference depending on the size of the room. Those using a studio now pay 17.90 florins (per week); 26.85 florins for the use of a one-person room, and 44.75 florins for the use of any other room.
On the other hand, according to the proposal, hotel guests will have to pay 21.50 florins per night. In the case of timeshares, they will be charged 69.80 florins for a studio, 103.80 florins for the use of a one-person room, and 173.65 florins for the use of any other room.
This drastic difference will anger many people, even within the Council of Ministers.
