December 13, 2018

Prime Minister's commencement address at the University of Aruba

Good morning ladies and gentlemen. Especially the graduates today. Congratulations with this important achievement. A double-degree Master. This achievement has not been without sacrifice and hard work. On the other hand, nothing in life is obtained without hard work or sacrifice. That is why this is an important moment to celebrate and to thank everyone who has made this possible for you. Family, friends, colleagues at work, employers, and of course the University of Aruba and the Maastricht University. The government of Aruba is grateful to the UvA and the UvM for making this possible. In the coalition agreement “Hunto pa Aruba”, the need to reform our current tax system in Aruba is put high on the agenda. Our current tax laws date from the early 19 hundred, and are very outdated. We have now embarked on the path towards a modern, efficient and sustainable tax system. The tax reform will be effectuated in phases. The first phase will be some low hanging fruits, in order to increase the buying power of the citizens. The income and wage tax rates, that have put Aruba on the list of highest taxed countries, will be reduced. The maximum tax rate of 58.95% will be reduced to 52%.
In the second phase we will focus on the indirect taxes and harmonization of the import duties. The future of the BBO will be decided. We are evaluating the several options, VAT, sales tax, IVA, ABB and BBO and will be in consultation with stakeholders. The target date is July 2019.
The third phase will be the tax reform of the income tax and profit taxes. The target date is January 1, 2020And the fourth phase will be the reform of taxation levied from tourists. This phase will also be accomplished in 2020.

We need a tax system that can adapt to the changes in the future. Changes are happening fast. Digitalization is not a luxury anymore, it is a necessity. Investment in innovation is a must, including our legislation needs also to be adapted. The nature of work is changing, so are the challenges and the opportunities of a more automated workplace. Yesterday new data was released that indicated that 85% of jobs that will exist in 2030, 11 years from now, have not even been invented yet. Are we preparing today’s learners for these jobs, of which 85% have not been invented yet? It is therefore crucial to develop skills needed to succeed in the future, the so called 21st century skills, empathy, creativity, collaboration, organization, critical thinking, problem solving. I know that YOU have been prepared for this future of work. It is up to you now how to apply the knowledge you obtained with these master degrees, to be successful in the future. The world needs you more than ever to go out there and do work that makes a difference. Do not limit yourself, you can even become prime minister. I hope that the government of Aruba can also count on your support. Together we have to face the challenges that lie ahead.
I wish you good luck in your future endeavors. Masha danki.” – Evelyn Wever-Croes