Doran presses for action as Prime Minister warns the levy will not close every financial gap and provides no implementation date or final allocation percentage.
PHILIPSBURG:--- Prime Minister Dr. Luc Mercelina has told Parliament that the Council of Ministers is working to accelerate tourist tax legislation, with part of the future revenue intended to help government meet its outstanding obligations to SZV.
Speaking as Acting Minister of VSA on behalf of Minister Claret Connor, Mercelina said that commitment remains in place.
“It has already been agreed that a portion of the tourist levy revenues will go towards government’s outstanding obligations,” he said, referring to SZV.
He explained that addressing those obligations would help relieve pressure on healthcare funds and allow them to serve their intended purposes.
Doran Demands Steps to Expedite the Levy
MP Egbert J. Doran asked what the Council of Ministers would do to move the measure forward after hearing its potential benefits for healthcare and social support.
He pressed for practical action to ensure that the proposal materializes sooner rather than later.
Mercelina replied that the legal framework must be established first.
“That is what we are now pushing and trying to accelerate,” he said.
He indicated that government would subsequently examine the percentage to be contributed towards SZV obligations.
His responses did not provide a commencement date, tax rate, collection mechanism or final allocation percentage.
Tourist Tax Will Not Solve Every Shortfall
Mercelina cautioned against treating the proposed levy as a complete answer to government’s financial pressures.
“We must not think, though, that the tourist tax is going to solve all the gaps that we have in our financial framework,” he said.
He maintained that additional sustainable revenue could help support healthcare and social assistance, but its final distribution would require broader government decisions.
The tourist levy falls within the Finance Minister’s responsibility.
SZV Balances Still Being Reconciled
Mercelina said government’s outstanding obligations to SZV are being reviewed and reconciled so that a structural repayment approach can be developed.
The presentation did not specify the reconciled balance or provide a repayment timetable.
He also identified measures intended to improve healthcare sustainability, including pharmaceutical cost containment, stronger premium collection, prevention and management of noncommunicable diseases, and improved information exchange between providers.
Insurance Reform Serves a Different Purpose
Mercelina distinguished the tourist levy from General Health Insurance.
The levy would generate government revenue. General Health Insurance is intended to improve healthcare financing and sustainability by broadening participation and addressing coverage gaps.
The distinction matters because anticipated tourist tax proceeds and insurance reform are not interchangeable solutions.
For now, the levy remains a prospective source of support. Parliament still needs the legislation, implementation arrangements and allocation decisions to assess how much it can contribute—and when that contribution will begin.