The Aruba freight tax removal request has been raised by the United Merchants Association of Aruba (CUA) as concerns grow over rising living costs.
Francis Saladin of CUA explained that while freight prices themselves have not significantly increased, the potential rise in bunker fuel surcharges could have serious consequences. If these surcharges increase multiple times, the effect would directly impact the cost of imported goods.
According to Saladin, the Aruba freight tax removal request is necessary because increasing shipping-related costs are immediately reflected in product prices. He emphasized that local merchants are not responsible for setting high prices but instead pass on the costs they receive from international suppliers, including freight charges.
A key issue highlighted is the government’s application of BBO tax on both the product value and the freight cost. Saladin described this as illogical and called on the government to remove taxes on freight as a way to ease financial pressure on consumers.
“This is something we already discussed during COVID-19,” Saladin noted. “If the government wants to provide relief, it should eliminate the tax on freight. Taxes should apply to the product itself, not the shipping cost.”
He warned that if fuel surcharges continue to rise, the total cost calculation for businesses will increase, leading to higher taxes and ultimately higher retail prices for consumers.
The Aruba freight tax removal request is being positioned as a practical solution to help control inflation and reduce the burden of rising costs on the population.
CUA continues to urge the government to take action to prevent further increases in the cost of living in Aruba.
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