Tax reform: on hold
The Local Authority wishes to undertake a reform of the local tax system. According to elected representatives, the current system, which has become partly obsolete, is inconsistent with the territory’s economic priorities: inadequate IT tools, a lack of reliable data on taxpayers and businesses, and an insufficient tax collection rate.
This reform follows on from the first seminar on taxation held in early 2026, which provided an opportunity to take stock of the current situation and gather the views of professionals, taxpayers and institutional partners. The aim is now to modernise and simplify Saint Martin’s General Tax Code and to better adapt the tax system to the territory’s economic realities. Alain Richardson, First Vice-President, presented the eight main areas of reform under consideration to the Territorial Council: improving human and IT resources; repealing tax provisions that have become obsolete; reviewing tourism-related taxation; unifying corporate taxation; using taxation to support economic development; promoting employment; and modernising investment support schemes. At this stage, no specific measures or the introduction of new taxes have been announced, apart from the reinstatement of the tourist tax, which was abolished in 2020; differentiated TGCA rates for certain tourism or leisure activities; the introduction of eco-taxes, the move to monthly tax payments, and tax incentives for businesses that hire staff, train their employees or invest. An Ad Hoc Tax Reform Committee (CAHRF) is to be set up to support this work.
It will comprise permanent members and, depending on the subject matter, external specialists (!). It will have an advisory role and will draw up proposals ahead of the territorial council’s decisions over a three-year period, the estimated timeframe for implementing the new measures. Five councillors voted against, 11 in favour and two abstained. However, as Territorial Councillor Mélissa Rembotte rightly pointed out, the Territorial Council’s resolutions must be adopted by an absolute majority, i.e. a minimum of 12 votes – a point that had escaped the Chairman’s attention. The resolution could therefore not be put to a vote and will have to be tabled again.
