MP York asks Minister: who benefits from tax holidays and exemptions

GREAT BAY--Member of Parliament Darryl York has submitted a series of questions to Finance Minister Marinka Gumbs, demanding clarity and accountability on the government’s continued use of tax holidays and exemptions. York said his inquiry is meant to determine whether the country is truly benefiting from such concessions, or if they are draining public resources with little return.

Among the questions, York asked how many tax holiday requests have been approved, denied, or are pending since the Minister took office, what measurable benefits previously granted tax holidays have provided, what criteria are being used to evaluate requests, and how the government ensures compliance and prevents abuse.

“In Sint Maarten, we are often told that to attract investment and grow our economy, we must offer incentives. For years, this has taken the form of tax holidays and exemptions, allowing certain businesses to operate without contributing their full share to our collective resources. But we must ask: are we receiving fair value from these concessions, and what is the true cost to the everyday citizen?” York wrote.

International institutions such as the IMF and numerous academic studies have consistently shown that such policies yield uncertain benefits, particularly in small economies like ours. The risks, York said, are clear: “significant loss of government revenue, limited long-term impact on sustainable growth, and a system that tends to favor large, often foreign enterprises. The real burden falls on the public, who experience the consequences through underfunded healthcare, education, and infrastructure.”

York also pointed out that the CFT has explicitly advised against the current framework. “The Financial Supervisor CFT has explicitly advised that the current tax holiday framework is no longer fit for purpose,” he said, stressing that Sint Maarten’s investment attractiveness means the island no longer needs to rely on such incentives to draw interest.

“My position on this issue has been clear and consistent. I have repeatedly raised concerns about a system that appears to offer generous benefits to the wealthy and well connected, while the most vulnerable among us, such as small business owners, single parents, and seniors, fulfill their obligations in full. A fair tax system should not privilege the powerful at the expense of the people.”

York emphasized that while tax holidays are often promised to deliver community benefits, job creation, and local investment, “residents see little to nothing in return. These days must come to an end. If we are to continue offering such incentives, the approach must be redefined into one that ensures tangible, lasting advantages for our communities, not just profitable outcomes for a select few.”

He concluded: “My objective is not to discourage investment but to advance transparency and accountability. The people of Sint Maarten have a right to know how their public revenue is being managed. At the heart of this inquiry is a simple principle: every guilder of public revenue matters. We cannot afford a system where benefits are granted without clear returns for the community. This is about governance that serves all people, building a more equitable Sint Maarten where growth benefits everyone.”

‍