The lack of control and enforcement (handhaving) regarding the informal market has reached a point where legal vendors and business owners can no longer compete.
This is the central concern expressed, highlighting that this unfair competition forces local businesses to face the difficult decision of either closing their doors or operating outside legal boundaries, as shared by the president of United Merchants Aruba (Comerciantenan Uni Arua – CUA).
During the statement, the fundamental importance of paying taxes (belasting) in a society was emphasized. While citizens and business owners pay taxes expecting to receive government services in return—such as infrastructure, public health, hospitals, and pensions—over the last 10 years, the issue of the tax-evading informal market has reached a level of “absurdity.”
Business owners in despair
Commercial associations constantly receive complaints from members who can no longer compete within their own sector. Formal businesses that are registered with the Tax Department (Belastingdienst) and duly pay their BBO face customers who complain that their product or service prices are too expensive, while their informal competitors are neither registered nor paying these taxes.
The situation has reached such an extreme that several business owners have submitted fraud reports (fraudemelding) and official complaints to departments such as Economic Affairs (Economische Zaken) and the Tax Department (Belastingdienst). However, despite having proof accompanying these complaints, nothing happens and there is no visible enforcement action.
The dilemma for the legal business owner
The lack of intervention by relevant authorities puts trade associations in a compromised and very difficult position when advising business owners pleading for help. The lingering question left in the air for a woman or owner running a legal business is: “Remain legal, close shop, or go illegal as well?”
The call is directed at the minister and concerned authorities to take concrete and effective steps to curb the informal market and protect the businesses that do comply with the country’s laws.