Saba News News and Information from Saba Island, Dutch Caribbean
The Dutch government intends to stimulate agriculture in Bonaire, St. Eustatius and Saba (so-called BES islands) with fiscal benefits. These are part of a larger package of measures to modernise the tax system. State Secretary for Finance Eelco Eerenberg sent his proposal for a legislative amendment to the House of Representatives last week. The new rules are to take effect on January 1 of next year.
“Local agriculture occupies a central position regarding increasing the self-reliance of public bodies. That position is becoming increasingly important. One of the cabinet’s objectives is that by around 2030, agriculture will be able to contribute more structurally to the local food supply and economy,” wrote the D66 state secretary in an explanatory note.
To stimulate farming, an incentive will be introduced for locally produced goods used in the sector. No General Spending ‘Pax ABB needs to be paid on these. “This could, for example, involve the production of fencing to delineate a plot of land,” explained Eerenberg. An exemption already applied when those goods were imported.
The second benefit is an exemption from transfer tax upon the transfer of so-called agricultural land used for farming. The latter consists of areas designated for specific forms of agrarian activities, such as livestock farming, arable farming, horticulture, and hydroponics. “This measure, like the previously mentioned exemption on the ABB, aims to stimulate local agriculture by reducing fiscal barriers,” according to Eerenberg.
The package also includes changes to other taxes. Examples include the introduction of the authority to deliver writs of execution by post and the introduction of the authority for the tax authorities to force vehicles to stop. The latter is permitted, for example, if a driver has not paid their tax despite a writ of execution.
Furthermore, the property tax is being increased for hotels that are not owned by natural persons.
The Daily Herald.
