The suggestion by Member of Parliament (MP) Rodolphe Samuel to raise the excise levy on fuel by 1.5 Antillean guilder cents (see related story) is not without merit. Earmarking funds for specific goals rather than including these in the general revenues can be more effective, because the money otherwise often ends up being used for different things. Examples of the latter include motor vehicle tax, which was supposed to be for road maintenance.
It is true as well that many local youngsters and organisations working on their behalf could use a bit of support, also to help prevent youth delinquency and crime. Increased participation in sports is always welcome, but when it comes to financing individual business ventures care must obviously be taken to avoid any semblance of favouritism.
One aspect to keep in mind is that tariff hikes for gasoline and diesel fuel will most likely be incorporated into the prices of consumer goods due to higher transport cost. Of course, it’s a very small amount, but if several companies deal with a certain product there could be a so-called multiplier effect.
Perhaps most important is the reality of sharing an island with the French side. When in the past the same excise was increased motorists simply drove across the open border to fill their tanks there for less. Fuel rates are already said to be lower in St. Martin than on the Dutch side, so this is definitely something to take into account.
Again, that doesn’t mean it’s necessarily a bad idea. As a matter of fact, a similar arrangement like in Aruba for existing room and timeshare tax income to directly fund an autonomous St. Maarten Tourism Authority (STA) foundation, enabling it to make the destination’s marketing and promotion more non-political, professional and stable, is actually long overdue.
