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The social benefits in the in the BES islands will not be increased on January 1. This is in contrast with an announcement made earlier this year. Nevertheless, the required budget has been reserved. However, State Secretary for Social Affairs, Jetta Klijnsma, has decided that she first will await the outcome of the roundtable consultations organized on the islands.
These consultations should lead to the definition of a minimum standard of living income that can be used as the lower limit for the amount of benefits and the minimum wage. It was the intention of the minister to hold the roundtable consultations this month, but that only worked on Saba. For “planning reasons”, Bonaire and St. Eustatius cannot organise these before January.
When asked by the Antilliaans Dagblad whether the delay may affect the increase in the social benefits, the ministry replied that “a decision to increase the social benefits is associated with the outcome of the round table consultations on the islands.”
Source: Antillean Dagblad, Curacao
And she has not thought about the round table consultations before, and not about the impact of these consultations?!? What a manager!!!
In light of the new Constitutional Order of Bonaire, Saba and St Eustatius, which applies to their status as municipals of the Netherlands, the subject discussion of increase social benefits is very relevant.
It is important that one understands the effects of systems of taxation on small socio economies such as the BES islands.
Firstly, the introduction if a new taxation system post 10 -10-10, gave the Netherlands power to levy taxes on the island.This Direct tax measure was later reviewed in January,2011 for which both business and individuals on the islands agreed to its purpose and implementation,since it translated into lower tax rates.
This was a form of taxation different from what exist in the Netherlands.
Presently,there exist a form of indirect taxation, which does assist in keeping cost of living standards relatively controlled,through lower employee tax payments and consumer prices. Though the impacts fo the results are beneficial on one side of the scale, there exist a consequential tilt to the other. Business growth is an important measure to the life chain on the islands. There need to be some continuous injection of regulatory capital funding, as a feed,aimed at fostering progressive growth,sustainability and improved social benefits on the islands.
Taxation measures whether direct, Indirect or double, structuring special taxation regimes for the islands, just will not work to bring the required result. The revenue flows on the islands are just not sufficient to offset increase growth which can impact increase social benefits.
Business initiatives related to strategic and environmental strengths is the best way forward.