Taxation: the first steps towards reform
The Collectivité has embarked on a major project: redefining the framework of its tax system, simplifying the General Tax Code and optimising tax revenue. The aim is to modernise a system that has become obsolete and is now considered unsuited to the realities of the territory. Having been in the pipeline for several years, the reform is expected to be implemented for the first time in 2027, twenty years after the change in status.
The review of the current tax system was launched in February at an initial seminar attended by elected representatives, the administration and partners. Prior to this, during the previous term of office, a study had been carried out to identify areas for improvement, and comparisons with other regions were made. This assessment is currently being finalised, said President Mussington, who is leading this reform project alongside First Vice-President Alain Richardson. At the start of the feedback session held on 31 March at the Grand Case Beach Club, they emphasised the urgency of “simplifying Saint Martin’s tax code and optimising the local tax system in the interests of all ”.
A necessary modernisation
Taxation accounts for 85% of the Collectivité’s resources (approximately €150 million), but the review highlights several weaknesses: obsolete IT tools, unreliable data, control difficulties that encourage fraud, as well as a tax framework that is sometimes unclear and ill-suited to a fragile economic fabric largely composed of
micro-enterprises.
In light of this, the priority is to modernise the system, which is currently too complex (no fewer than ten different software programmes are used by the public finance department), to create a single, unified platform. Work on this has already begun, according to the Collectivité’s Director-General of Services. This improvement in tools and collection procedures would ensure more stable and secure revenue. It is also a question of simplifying procedures for citizens, with the eventual aim of enabling all tax returns to be filed online.
The Collectivité’s objective is to collect taxes directly, without going through the State, in order to gain greater autonomy, responsiveness and transparency.
Improving the system’s efficiency
The reform also aims to make taxation a lever for economic development. This involves, in particular, supporting the structuring of local businesses by simplifying tax regimes, making taxation more transparent and directing tax incentives towards priority sectors, subject to commitments (employment, training, investment, environmental transition).
Extending the tax base to new activities is another avenue being explored. The tourist tax could be amended, and certain taxes might be abolished in favour of others, such as the introduction of an eco-tax. At this stage, no concrete measures have yet been adopted.
Elected representatives held an initial working meeting on 1 April, and a framework resolution is due shortly to set out the broad guidelines and propose the creation of an ad hoc committee. The reform will be implemented in stages, through thematic workshops and successive decisions. A public consultation is also planned to involve the public in this project, which is set to continue for two to three years.
