Income less than $24,000 exempted from taxes
Dean Barrow
But Barrow said it’s not all doom and gloom. The Poverty Assessment Report indicated that more Belizeans are poor. So naturally, increased taxes will push employed individuals into a category of the working poor. So to appease one section of the electorate, Barrow intends to exempt anyone earning less than twenty four thousand dollars a year, from paying tax.
Prime Minister Dean Barrow
“We are increasing the basic income tax deduction for employed individuals earning less than twenty-four thousand dollars per annum. That increase in the basic income tax deduction for employed individuals earning less than $24,000 per annum, is up from $19,600 to $23,600. This in effect would mean that all employed individuals earning less than $24,000 per annum would be exempt from tax, while those individuals earning more than $24,000 would continue to be eligible for the current basic deduction of $19,600. Further, this change will take effect retroactively for the tax basis year commencing 1st January 2010. So under this United Democratic Party Government, no person with a salary of $500 per week or less, will ever again have to pay a single penny in income tax. It is useful to add at this point that we have allocated $3 million merely as a place holder in the budget in contemplation of the modest improved incentives we are determined to give to our teachers and public officers. What those incentives will be and what the final figure will be will of course have to be negotiated with them. Then Mr. Speaker, we come to the Removal of Import Duty. We are doing this on a wide range of basic food items, powdered laundry detergents, agricultural equipment and machinery including tractor parts, agricultural packaging materials, and basic school supplies.”
“Taken together these relief measures are a wide-ranging, effective, cost-controlling effort on behalf of the most pressured consumers. Let no one say, Mr. Speaker, that even in a crisis, this government does not look after the poor, the struggling, the middle class. The price of these relief measures is some $10.5 million in forgone revenue. This sum has already been factored into the estimation of the revenue side of the budget and in the estimation of the un-financed gap of $61.0 million.”
But while, according to the prime minister, the exemptions total ten point five million dollars, he projects to collect over forty-two million dollars from the increase in GST alone.
How much income tax does someone who makes between 19,600 and 24,000 pay? How much more taxes will they pay in GST now? Will the income tax exclusion make up for the increase in GST? And what about those people who make $24,000 – that’s just $2000 a month – not even enough to live on in some parts of the country.
I fear that what’s going to happen is that people will just stop spending on anything but absolute necessities, which will negatively impact the country — and not just from the shortfall in projected income from GST that won’t happen because of decreased consumer spending.
This whole tax increase regime is just stupid. How many people who should pay GST aren’t paying? A lot. How many people who should be paying business tax aren’t paying? A lot.
We can’t blame Barrow and the UDP for this fiscal mess – they didn’t make it. But, they sure aren’t proving their competency in the ways they are trying to solve it.
Putting the burden of our staggering economy on the shoulders of the middle class again. When this government was elected to office it was on the promise of increase tax bracket to 25,000 not to increase the bracket for a few while the others continue paying for all the social programs. The middle class workers get no incentive for being the driving force behind this economy. This government is nothing more that a slave driver. 25% tax is too high, and for what, bad health care as a matter of fact we rarely use government health care facilities since we can afford insurance. ( we still have to pay social security) Bad roads, dilapidated schools, inadequately trained and equipped police force. I would not mind paying the tax but let show something for it. Let be fair.
In complete agreement with concerned belizean…
The question is: can anything be done now?
Oh, yes concerned Belizean the motto in Jamaica is “No taxation without representation”. You see, the Gov needs taxes to stablize the economy by paying off loans, paying teachers and fixing the roads, so I agree with the taxes to some point. But my problem is that firstly we see nothing for the taxes we pay in Belize, bad roads, bad health care, substandard education, you name it. But this is due to a greater problem: How many people in Belize make over 24,000 BZD per year. LOL. I bet not even 30% of the population of 300,000 people, and that is our main problem.
Low wages to begin with due to under educated citizens leading to not much collection of income tax, the small population which should be very productive but not well paid hence there is no spending becuase no money is available and of course mismanagement of funds and corruption.
This is our plight but taxes are necessary, or else we will have a dollar like the Jamaican dollar which is 89.74 Jamacian dollars to 1 US dollar. so just think about it
Scandenavian countries such as norway and Denmark have an income tax of 40% for the minimum wage workers, and it goes up to 60% for upscaled workers, no one is exempted from tax because they have friends in the govt. Also sales tax is 25%. But!!!! EDUCATION UP TO YOUR PHD LEVEL IS FREE AND WORLD RECOGNISED, HEALTH IS ONE OF THE BEST IN THE WORLD AND IT IS FREE, TRANSPORT IS FREE AND ALL CITIZENS ARE SECURED A PENSION ON RETIRING!!! Sounds good.