September 1999
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September 12, 1999

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Newsflash! - Tax Protest Notice

AKIB (the Bonaire Business and Industry Association), with the support of leading members of the Bonairean government and other business and tourism related organizations, has called for a vast public protest of the soon to be instituted 5% NAOB (Nederlands Antillen Omzetbelasting - a sales tax or "turn-over" tax). The protest will run from 4:30pm to 6:30pm on Monday, September 13th, and will be held at Wilhelmina Plaza.

All Bonairean business people are also being asked to support the protest by closing their businesses during the protest hours to help show solidarity in this matter, in the belief that the Central Government, which is the source of the upcoming tax legislation, will take heed that no one on Bonaire approves of this tax increase. The tax, if implemented, will reportedly drain NAFl. 40,000,000 from Bonaire's economy. In fact, as part of the increase, all basic items which are not taxed under the current 2% NAOB, such as food staples, utilities, and books, will become taxable when the tax is raised to 5% - an event which currently appears to be scheduled to start on October 1st.

As products of all sorts are already significantly more expensive on Bonaire than on Curacao, the impact of the new tax will be much greater here on Bonaire (see the most recent issue of the Bonaire E-News for an example).

Furthermore, as St. Maarten has been exempted from this increase because it would hurt their tourism-driven economy (the rationale is that people would shop on the French side of the island), the application of the tax increase to Bonaire would appear to be highly discriminatory. Bonaire is already not an inexpensive destination to live on or visit, and adding more taxes will price the island right out of the budget of many. So, while St. Maarten has the ability to set its own taxes to preserve its tourism, Bonaire isn't being given that right to preserve its tourism. It's irrelevant that in one case people can drive to a cheaper location and in the other people will just fly to a different, cheaper destination. Both will lose.

The Bonaire E-News has learned that already a significant number of businesses on Bonaire have agreed to participate in the tax protest and will be closing as requested by AKIB. Our parent entity, NetTech, is among those, as are numerous supermarkets, shops, and even parts of Bonaire's resorts.

Here is the text of the AKIB release:

"Dear Entrepreneurs,

AKIB would hereby like to invite you and your employees to participate in a public demonstration on:

     Date: Monday, September 13th, 1999
     Time: 04:30 p.m. to 06:30 p.m.
     Place: "Plasa Reina Wilhelmina"

DID YOU KNOW THAT THE 5% MEASURE IS GOING TO COST BONAIRE 40 MILLION GUILDERS!! NOT EVEN ELECTRICITY, WATER, AND GAS ARE EXEMPTED!

We must show our disapproval against the intention of the Central Government to introduce this increase of the turn-over tax. We hereby request your support by joining AKIB and other social partners of Bonaire at this public demonstration. In addition, we urge you to close all your businesses during two (2) hours and to allow your employees to attend the demonstration. Your support will help us send a clear message to the Central Government: NO MORE DISCRIMINATORY MEASURES which will be devastating to the Bonairean economy!"

For those running businesses on Bonaire, we hope to see you at the tax protest. For those interested in how this all turns out, be sure to read this coming week's issue of the Bonaire E-News - arriving in an e-mail box near you this coming Wednesday.

InfoBonaire  

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