GREAT BAY--Minister of Finance Marinka J. Gumbs has presented the Ministry of Finance’s first quarter 2026 overview, outlining a series of legislative, administrative and policy initiatives aimed at strengthening financial management, modernizing the tax system, improving compliance and restoring public confidence in St. Maarten’s financial framework.
The quarterly update, titled “Finance Forward,” is built around the Minister’s guiding framework of “Stabilize, Repair, Reform.” In her foreword, Minister Gumbs said the work of the Ministry is “not simply about numbers,” but about restoring confidence, strengthening systems and building a more resilient and fair economy for all. She explained that stabilization focuses on maintaining fiscal balance and safeguarding government operations, repair addresses long-standing inefficiencies and modernization, while reform is aimed at building a smarter and more balanced tax system that reflects the realities of St. Maarten.
A major first-quarter milestone was the advancement of the Basic Payment Account legislation, which was unanimously approved by Parliament on January 9, 2026, and officially published on April 15, 2026. The legislation is intended to expand access to basic banking services for individuals who may face challenges obtaining a bank account. Before implementation, the maximum monthly deposit limit must still be established, with discussions ongoing between the Central Bank of Curaçao and St. Maarten and the St. Maarten Bankers Association. The Ministry said the measure supports financial inclusion, reduces dependence on cash transactions and strengthens compliance with international standards on anti-money laundering and financial transparency.
The Ministry also highlighted continued work on the revision of formal tax law, which was addressed during the continuation of a Central Committee meeting of Parliament on February 4, 2026. The revision is part of the broader tax reform agenda and is focused on modernizing the procedural framework governing taxation. According to the Ministry, the changes are expected to enhance legal clarity, strengthen enforcement, improve the balance between taxpayer rights and the authority of the tax administration, reduce disputes and create a more predictable tax environment.
On February 5, 2026, a coordinated compliance audit was initiated across the Tax Office, SBAB and SZV. The audit is intended to strengthen oversight, improve coordination among agencies and identify gaps and inefficiencies in the tax system. The Ministry said the effort is aimed at improving revenue collection without raising tax rates, while reinforcing public confidence in the fairness and effectiveness of the system.
Minister Gumbs also reported on her February 9 visit to the new APS office in Diamond Estate, Cole Bay, where she met with the APS team to discuss matters raised during Finance Fridays and Financial Literacy Month. Topics included plans for a “Register to the APS Portal Day” to assist civil servants with accessing their pension information, the importance of publishing the annual franchise amount for accurate income calculations and recurring tax challenges faced by pensioners whose combined APS and AOV income may result in higher tax obligations. Work is also underway on a voluntary system that would allow additional taxes to be withheld directly from pension payments.
The Ministry formally launched the Transformation Tax Administration Program on February 11, 2026. The program is designed to modernize St. Maarten’s tax system by improving efficiency, strengthening operations and enhancing customer service. It includes upgrading digital systems and internal processes to make tax administration more transparent, effective and user-friendly.
The quarterly review also provided an update on the 2026 budget process. On January 30, 2026, the Kingdom Council of Ministers instructed that every effort be made to accelerate the process with the goal of submitting the draft budget to Parliament by May 18, 2026. The Council of Ministers approved the draft 2026 Budget on March 27, after which it was submitted to the Governor and the Council of Advice. The urgent advice request was received on April 8 and finalized on May 5.
Looking ahead, the Ministry pointed to early preparations for the 2027 budget. On February 12, the Council of Ministers, together with Secretaries General, Financial Controllers, Chiefs of Staff and the Cft Secretariat, began deliberations on policy priorities and financial thresholds for the 2027 budget. The Ministry described the session as the first of its kind in terms of coordination, resulting in the Council of Ministers approving budgetary thresholds for each ministry for the 2027 fiscal year. Minister Gumbs said the early start is intended to strengthen fiscal discipline, improve policy-based budgeting and ensure a more timely budget process moving forward.
The Ministry also reported progress on targeted tax relief measures, including the proposed abolition of land and inheritance tax, which was addressed in Parliament on February 13. The measure was described as a “quick win” under the phased tax reform approach, aimed at removing administrative burdens connected to low-yield and difficult-to-enforce taxes while reducing financial barriers related to property transfer and generational wealth.
Another measure implemented during the quarter was the temporary extension of income tax payment arrangements from 9 to 24 months, published in the National Gazette on February 13 and implemented on February 14. The Ministry said the extension recognizes financial pressures faced by individuals and provides additional flexibility for settling outstanding income tax obligations. The measure is intended to support taxpayers through structured relief while maintaining compliance and reducing the likelihood of enforcement actions that could further strain households.
On March 2, 2026, Minister Gumbs presented five draft uniform laws to Parliament, covering supervision of securities brokers and asset managers, payment service providers, virtual asset service providers, payment or securities transaction systems and managers of FMI systems. The Ministry said the legislation is important for creating a licensing and supervision framework, supporting the development of payment systems and helping St. Maarten meet Financial Action Task Force requirements.
The review also noted the Minister’s March 12 meeting with the TelEm union, held in response to public concerns regarding TelEm N.V. In her capacity as the designated contact person for the company on behalf of the Council of Ministers, Minister Gumbs met with the union to discuss the matters raised and to help ensure continued attention to staff welfare and operational stability.
Additional first-quarter actions included the March 18 publication of the 2026 income and wage tax tables, which provide guidance to taxpayers, employers and employees for accurate tax calculations and withholding. That same day, the Minister met with the Managing Director and Supervisory Board of the Cadastre and Land Registry, where the organization’s Strategic Plan was formally presented. The plan outlines the institution’s priorities and direction for the coming years and is expected to be presented to Parliament at a later date.
The quarterly update also addressed the future of the monetary union with Curaçao. On March 31, Minister Gumbs raised concerns in Parliament about governance structures, decision-making processes and the extent to which the current monetary union aligns with St. Maarten’s economic realities and financial interests. She announced the establishment of a dedicated task force to assess possible scenarios for the future monetary framework, including the current state of the union, potential reforms and contingency considerations.
In the area of public engagement and financial literacy, Minister Gumbs participated in CBCS Money Week on March 23, joining the Central Bank of Curaçao and St. Maarten to present a money box to the MLK Jr. School. The Ministry said the initiative aligns with the Minister’s focus on teaching financial responsibility from a young age. The quarterly review also reminded residents that the Minister hosts Finance Friday every last Friday of the month from 9:00 a.m. to 12:00 p.m., allowing members of the public to bring matters directly to the table for follow-up by the Minister’s cabinet.
In closing, the Ministry said the initiatives undertaken in the first quarter reflect a disciplined approach to reform through legislative action, administrative improvements and targeted policy measures. The focus remains on strengthening compliance without overburdening citizens, simplifying and modernizing the tax system, enhancing transparency and accountability and delivering practical benefits to the people of St. Maarten.
Minister Gumbs also extended appreciation to civil servants for their dedication, professionalism and support in advancing initiatives that directly benefit the country.
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