P.M. says fees won’t affect free zone competitiveness
The Minister of Lands did get his way today, at least in terms of getting his bill passed with expediency. Another bill fast tracked was the referendum for the people of Belmopan to decide if they want to become a city. The referendum is tentatively scheduled for next month. The Leader of the Opposition said once again that while he supported the move, he believed there were other more pressing national issues that deserved such a speedy referendum, including the Economic Citizenship Program and the Chalillo Dam. One of the main issues of the day, however, was the Commercial Free Zone Amendment which extends the income tax holiday for C.F.Z. businesses but imposes a one and a half percent social fee and a ten percent fee on gasoline sold in the zone. The Prime Minister Said Musa stated that in no way would the fees endanger the zone business’ competitive edge.
Said Musa, Prime Minister
“The social fee proposed is one and a half percent on all goods other than fuel imported into the zone and a ten percent fee on fuel imported into the zone.
This social fee of one and a half percent is no different from the administration charge which for many years now has been levied on goods in transit which are re-exported. As regards to fuel the social fee of ten percent on the landed cost will still allow fuel operators in the zone to enjoy a substantial competitive advantage over the cost of purchasing fuel in Chetumal, Mexico.
In fact, Madame Speaker, I am informed that today the cost of a gallon of premium gasoline in Chetumal is two US dollars or four dollars Belize. Whereas in the commercial free zone it is one dollar and twelve cents US, leaving a difference of eighty-eight cents US or one dollar and sixty-six cents cheaper in the commercial free zone than in Chetumal. So a ten percent social fee will make hardly any difference what so ever to the competitive advantage that the zone presently enjoys.”
