PM dismisses claims of double taxation on fuel sold to GEBE: "I wish the MP was right"

GREAT BAY--Prime Minister Luc Mercelina has formally addressed and dismissed recent claims by Member of Parliament Omar Ottley that the people of St. Maarten are being subjected to double taxation on fuel used by N.V. GEBE for energy production.

The Prime Minister expressed that he would have welcomed such a discovery if it were true, as it could have offered a potential avenue for immediate relief to consumers. However, following a thorough legal review, he concluded that the MP’s assertions were incorrect.

“I wish the Member of Parliament was right,” said Mercelina. “Had that been the case, I would have immediately taken action to provide relief to the people. But unfortunately, it is simply not true.”

According to the Prime Minister, a misinterpretation of the Turnover Tax (TOT) legislation appears to be at the core of the misunderstanding. He explained that while TOT is indeed levied on fuel sold to gas stations and again when it is sold to consumers, creating a visible double transaction, that system does not apply to fuel sold to GEBE for electricity generation.

“There is no double TOT being applied in the fuel transactions to GEBE. The law provides a clear exemption in this case,” Mercelina stated. “Fuel sold to gas stations is taxed at the point of sale and again at the consumer level. But the sale of fuel to GEBE for national energy production is exempt from TOT. That’s a fact outlined in the national ordinance.”

The Prime Minister further emphasized that his office conducted a complete review of the relevant legislation and auditing practices to ensure clarity before responding publicly. “We did the necessary investigation. It is completely not true what the Member of Parliament is suggesting,” he added.

Mercelina expressed hope that this explanation would finally bring an end to what he described as a repeated but incorrect claim in Parliament. “This particular double taxation issue, as it relates to fuel for GEBE, should no longer be part of the debate. I trust that we can now move forward with accurate information and focused discussions on delivering real solutions for our people.”