MP Francisco Lacroes calls for end to multiple tax layers in fuel pricing

GREAT BAY--Member of Parliament Francisco Lacroes is calling on the Government of St. Maarten to immediately remove what he describes as an unfair tax burden in the fuel pricing structure, where fuel is taxed at the wholesale stage and again at the retail level before reaching consumers.

Lacroes said the current pricing mechanism adds unnecessary pressure on consumers at a time when fuel prices are already placing a heavy strain on households, transportation providers, and businesses.

Recent fuel price buildup data published by the Ministry of Tourism, Economic Affairs, Traffic and Telecommunication (TEATT) shows that turnover tax is included in the fuel price at more than one point in the pricing process. According to Lacroes, this layered approach increases the final pump price and worsens the cost of living.

“With fuel prices climbing to unsustainable levels, our people are suffering,” Lacroes said. “At a time when families are already struggling with the high cost of living, government should not be allowing added tax layers to drive up the price of essential goods such as gasoline and diesel.”

The latest fuel adjustment raised the price of gasoline from NAf. 2.288 to NAf. 2.850 per liter, while diesel increased from NAf. 1.918 to NAf. 2.679 per liter. Lacroes said those increases affect not only private motorists, but also taxi and bus operators, small businesses, and the wider economy.

He argued that removing one of the turnover tax applications would bring immediate relief to consumers. Based on the current buildup, gasoline priced at NAf. 2.850 per liter would fall to about NAf. 2.714 if the retail-level tax component were removed, and to about NAf. 2.722 if the wholesale-level tax component were removed. Removing both layers would reduce the price to about NAf. 2.592 per liter.

Diesel shows a similar pattern. The current price of NAf. 2.679 per liter would drop to about NAf. 2.551 if the retail-level component were removed, about NAf. 2.558 if the wholesale-level component were removed, and about NAf. 2.436 if both were eliminated.

“These figures show that correcting the current structure can provide real and immediate relief at the pump,” Lacroes said. “Government must take a serious look at whether this system is fair, necessary, and sustainable.”

Lacroes said one of the tax layers could be removed through a ministerial decision, and called on the Minister of TEATT and the Council of Ministers to act without delay.

He is calling on government to:

• remove the turnover tax applied at the retail level of fuel pricing;

• review the full fuel price buildup mechanism for fairness and transparency;

• introduce stronger consumer protection measures to prevent unnecessary tax layering; and

• identify alternative revenue measures that do not place added pressure on the public.

“As representatives of the people, we must act now,” Lacroes said. “High prices are squeezing every household, and government must take responsible steps to reduce the burden wherever possible.”

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