New Sales Tax effective April first
April first is the day the new Sales Tax comes into effect. In an effort to explain the new tax and changes to the Business and Income Taxes to its members, the Belize Business Bureau held a workshop this morning. Commissioner of Income Tax Geraldine Davis and Commissioner of Sales Tax Carmen Barrow made presentations and addressed members’ concerns. Liz Sutherland, who has a seasonal business, told News Five she questions why the new tax is being introduced in the first place and does not feel that government has properly informed the public. Fred Hunter of the Belize Business Bureau agreed that the time frame is short, but he believes the government should be commended for the work it has done to revise the tax structure in just six months.
Liz Sutherland, Liz’s Black Colouring
“The time span is so short compared to the Value Added Tax because as I can recall when the Value Added Tax was to be implemented, before it was implemented, there were lots of workshops all over the country, in each district and it was very explicitly explained to everyone. Why is it that we have such a short time span to do this now?”
Q: “Do you think you’ll be ready by April first?”
Liz Sutherland
“I don’t think so; people aren’t satisfied but being the situation as it is right now, it’s not whether you like it or not, you just have to accept it and that shouldn’t be happening. We need much more time to get into this. We need workshops for this to explain how it is going to affect or be an advantage or disadvantage to each individual or business persons on a whole.”
Fred Hunter, Livestock Producers Assoc. & B.B.B.
“It’s a little tight because from the fact that the elections were only six months ago. A lot of thought had to be put into formulating this legislation. So the six months that we have is just too short to do the public relations and the explanation to the public that I think the government would have preferred to have. But if they’re gonna cut off VAT at the end of March then they have to get something in place. I suggest that they could put a one month enforcement date; I don’t know how practical it is.”
The new Sales Tax and amendments to the Business and Income Taxes will be debated in the House of Representatives this Thursday. Commissioner of Sales Tax Carmen Barrow says agents will be registering businesses for the new Sales Tax from March twenty third to April fifteenth. Anyone who produces, imports or provides services with total taxable proceeds exceeding four thousand five hundred dollars a month or fifty four thousand dollars a year must register to pay the eight percent tax. Ten or so basic foodstuffs are exempted and petroleum products, alcohol and cigarettes will be taxed at twelve percent. Anyone who would like to comment on the proposals is invited to a meeting of the Finance Committee Tuesday morning in Belmopan. The fifteen percent Value Added Tax is being repealed effective April first.
