Revenue measures: Govt pursues Tourist Tax, Revised Fees and Gaming Tax

GREAT BAY--The Government of St. Maarten is advancing several revenue-generating measures, including the introduction of a tourist tax, revisions to government fees, improved tax collection and the exploration of a gaming tax framework, as part of its efforts to broaden the country's revenue base and strengthen public finances.

Minister of Finance Marinka Gumbs outlined the initiatives during Tuesday's parliamentary debate on the draft 2027 National Budget, emphasizing that the government has deliberately excluded projected income from these measures until the necessary legislation has been approved and implementation becomes sufficiently certain.

The Minister explained that including anticipated revenue from measures that have not yet received parliamentary approval could overstate government's financial position and create unrealistic expectations regarding available resources.

The measures currently under development include four areas of revenue reform.

Introduction of a Tourist Tax

The government is pursuing the introduction of a tourist tax, for which the legislative process is already underway.

The proposed measure forms part of a broader effort to diversify government revenue and strengthen the country's long-term financial position.

However, collections from the proposed tax have not been included in the 2027 revenue projections because the legislative process must first be completed and the necessary administrative arrangements established.

Revision of Government Fees

The Ministry of Finance is also working on revisions to various government fees through amendments to the applicable Fees Ordinance.

The initiative is intended to update existing fee structures and provide additional opportunities for government revenue generation.

According to the Minister, the anticipated financial benefits will only be reflected in future budget estimates once there is greater certainty regarding the legislative process and implementation.

Strengthening Tax Compliance and Collection

Another major component of the government's revenue strategy is improving compliance with existing tax obligations.

The Ministry intends to strengthen tax assessment and collection through modernization of the tax administration, improved taxpayer registration, greater use of digital services and stronger compliance monitoring.

Beginning in 2027, the tax administration will introduce a compliance baseline program aimed at improving timely tax filing and payment while strengthening control over taxpayer registration, assessments and outstanding obligations.

The Ministry is also working with the Chamber of Commerce and other relevant institutions to validate and improve the taxpayer register.

A new business taxpayer portal is being developed to allow businesses to access filing information, review their compliance status and communicate more efficiently with the tax administration.

Other improvements include standardized payment references to reduce processing errors, better allocation of payments and management dashboards to monitor tax compliance and arrears collection.

The Minister also announced plans to reduce unnecessary filing requirements for qualifying AOV pensioners whose sole source of income is their pension.

Exploration of a Gaming Tax Framework

The government is examining the possibility of introducing a gaming tax framework as another potential source of revenue.

Gumbs identified the initiative as part of the government's medium- and long-term fiscal reform agenda. The proposal remains under exploration, and no anticipated revenue from the measure has been incorporated into the draft 2027 budget.

Existing Revenues Expected to Grow

While the new measures remain under development, the government expects revenue growth from existing sources.

Total tax revenue is projected at approximately Cg 497 million in 2027, an increase of Cg 19 million compared to the 2026 budget.

Revenue from licenses and permits is projected to increase by approximately Cg 6 million, primarily reflecting business license assessments and historical collection information.

Fees and concessions are expected to increase by approximately Cg 2 million, largely due to higher bank license fees.

Other government revenue, including grants and project-related funding, is expected to decrease by approximately Cg 4 million.

Gumbs explained that revenue forecasts are based partly on the relationship between tax collections and gross domestic product. As economic activity expands, government generally expects higher collections from wage taxes, profit taxes and turnover taxes.

The Minister maintained that additional revenue measures remain necessary to improve St. Maarten's financial resilience, create more room for investment and reduce dependence on existing revenue streams.

The Ministry of Finance intends to incorporate the financial impact of the proposed measures into future budget updates once their implementation timelines and expected collections can be estimated with greater certainty.

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