The Dutch Caribbean obtaining the lowest rate in the Netherlands’ new draft Flight Tax Differentiation Act (see Monday’s front page) to go into effect on January 1, 2027 is most welcome. Because it’s based on distance from Amsterdam the islands would normally have fallen into the highest category, but an exemption was made.
Curaçao, Aruba and St. Maarten, but also the so-called BES islands (Bonaire, St. Eustatuis and Saba) have primarily tourism economies that to varying extents rely on visitors from Europe and particularly the Netherlands. Increasing the tax per passenger from the current 29.24 euros by more than 100% to 70.86 euros could have dealt a significant blow to their respective hospitality industries.
This move is not without controversy, as the Council of Sate raised questions about preferential treatment. The issue is whether flights to other destinations at roughly the same distance can be taxed more based on having a different relationship with European countries.
Mention was made of Martinique and St. Barth. The council indeed has a point where it regards European Union (EU) Overseas Countries and Territories (OCTs), Ultra-Peripheral Territories (UPTs) and the like.
However, the answer is simple. If France or other EU members take similar action they too can grant their respective overseas territories exceptions based on that status. As a general principle of law, differentiation may be permitted if justified.
One could even argue that this is a matter of national interest. After all, being part of greater constitutional totalities including a kingdom ought to mean something.
