Aruba To Impose Crisis Levy Starting July 1
by Mike Godfrey, Lowtax.net, Washington
06 April, 2018
The Caribbean island of Aruba has announced temporary rises in turnover tax (BBO) and health tax (BAZV) to shore up its finances.
Starting July 1, 2018, the BBO and BAZV will rise 2.5 percent to six percent. Of the 2.5 percent increase, 1.5 percent is intended to pay for the previous government's public-private partnership commitments, and one percent is earmarked to cover rising social health insurance (AZV) costs.
The temporary levy increases will be accompanied by compensation for small business and the most vulnerable. Small business and companies with annual profits of less than AWG12,000 (USD6,700) will be exempt from BBO, while those earning AWG2,400 or less, will receive an increase in supplementary benefits. Pensioners will see their AZV premium cut to 6.5 percent (currently 10.5 percent).
Aruba's Government forecasts that the announced measures, and sharp cuts in spending, should return the island's budget to surplus in the next three to four years.
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