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Engels

Government gets red card for poor collection of VAT

PARAMARIBO - The government will reportedly have to work harder to beef up the collection of Value Added Tax (VAT).

Times of Suriname

During the discussion of the National Budget 2026 several MPs criticized the government for failing to reel in more money. The government’s failure to screen and double check the financial records of local businesses has made it possible for local entrepreneurs to keep the VAT that they are supposed to hand over. Meanwhile the entrepreneurs who stick to the rules and up paying the price. MPs from the ruling party namely the National Democratic Party (NDP) urged the government to do its homework. The discussion in parliament flared up after it became clear that the government expects to haul in more income. The government initially indicated that it expects to reel in SRD 8.75 billion but recently it changed this figure to SRD 10.54 billion. MP Silvana Afonsoewa (NDP) explained that entrepreneurs collect VAT but so not hand it over to the state. She pointed out that “the government knows which companies have received a permit and that it should take more action to reel in this money”. “We know where the money is but we do not collect it”, said MP Afonsoewa. MP Ann Sadi urged consumers to do their part by demanding the receipt at all times. She explained that “this helps to make sure that the VAT is handed over to the government”. MP Raymond Sapoen (NDP) made it clear that VAT is one of the most important sources of income for the state. He also pointed out that there is still more room to further increase the income but only if the money is collected effectively. The government projected that it expects to collect about SRD 40 billion in the period 2026-2029. The legislators pointed out that this figure can go much higher if the government aggressively implements its policy that is aimed at collecting VAT. The government claimed that it lacks the capacity to collect more money but parliament deemed it a weak excuse.

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