A study commissioned by the Dutch Ministries of Finance and of Infrastructure and Water Management (see related story) confirms that the Caribbean part of the Kingdom could lose millions of euros annually if the Netherlands were to proceed with a proposed increase in air passenger tax. Ticket prices from Schiphol Airport to the islands could increase by an average of 17 to 54 euros.
Government argues that passengers should pay a bigger charge for long-haul flights, which produce more pollution. Higher taxes would also generate additional revenue for the national treasury, while the impact on the Dutch economy and employment is expected to be limited.
The situation is different for the overseas territories of the Kingdom. Due to their close cultural, economic and demographic ties with the Netherlands, a separate impact assessment was carried out. The study concludes that travellers would spend 13 to 37 million euros less annually in the Caribbean, with five to 15 million euros of that loss directly affecting local residents. Employment on the islands could decline by 0.1% to 0.9%.
Concerns about the tax hike were widely shared during a public consultation process. “Many respondents advocated for an exemption for the Caribbean part of the Kingdom, citing the lack of alternative travel options. Others, however, argued for a simple, uniform tax,” wrote outgoing State Secretary Tjebbe van Oostenbruggen in his letter to the Second Chamber of Parliament in The Hague.
In May, PVV faction member Peter van Haasen submitted a motion calling for exempting the Caribbean territories. “Affordable and accessible air connections are vital for the economic and social development of all six islands,” Van Haasen said. The motion was supported by all parties, except the Socialist Party (SP), the Party for the Animals (PvdD), GroenLinks-PvdA and D66.
It received a positive response from the then-PVV State Secretary Zsolt Szabó. His successor, New Social Contract (NSC) party’s Van Oostenbruggen, struck a more cautious tone, referring instead to the findings of the ongoing study. Based on this input, the government will continue to refine the measure in the coming period. The intention is to present a proposal in September, on Budget Day.
Nevertheless, it will be hard to ignore the legislative majority backing an exception for the Dutch Caribbean. After all, being part of and – by extension – travelling within the Kingdom should mean something.
