Income tax exemptions put the burden on 13% of work force
Marilyn Ordonez
The fiscal budget for the upcoming financial year was announced on Monday and we are still doing the math on a number of issues in the sixty-one million dollar deficit budget. Firstly, we look at the issue of income tax. Prime Minister Dean Barrow was obviously pleased to say that those persons earning less than twenty-four thousand dollars would now be exempted. And if you are in that category, you will be fine, except of course that you will still pay the two point five percent increase in GST. You will also be surprised to find out that only thirteen percent of the workforce is carrying the tax burden on their shoulders. The Prime Minister also said that some seven thousand more Belizeans would no longer be required to pay income tax as a result of a broader threshold. Interestingly, the Tax Department would lose two million dollars but will gain ten million from the new measures. News Five sat down today with the Commissioner of Income Tax to find out more about the changes.
Marilyn Ordonez, Income Tax Commissioner
“There will not be a change in the threshold, which is twenty thousand. There will be a change in the basic relief where you’ll have two basic relief, one that will say twenty-three thousand six hundred and the other that is nineteen thousand six hundred. The one that is the basic relief of twenty three thousand six hundred will apply only to those persons whose total salary from all sources is less than twenty-four thousand. Because the law says less than twenty-four, at twenty-four thousand you start paying tax, but your basic relief will not be twenty three thousand six hundred. It will be nineteen thousand six hundred, which is still in place, which is still a part of the tax table that we have, so effectively, you will pay at twenty-four thousand dollars per annum, your tax will be one thousand dollars per annum, which translates into about eighty three dollars and thirty three cents monthly, or nineteen dollars and twenty three cents weekly or forty one sixty seven if you’re bi-weekly.”
Altogether, according to Ordonez, the workforce is made up of sixty thousand six hundred and ninety-one persons. Of that figure, fifty-two thousand five hundred and nineteen will not be paying income tax while eight thousand one hundred and seventy two will have to. This then means that the huge disparity between the haves and the have nots has just gotten wider.
But if you make just barely above twenty four thousand dollars and find that you don’t fall within the non-taxable threshold, Ordonez says it is not all bad.
Marilyn Ordonez
“As a citizen of your country the rationale should be that you want to contribute. The only way you contribute to your country is through taxes, there’s no other way you know. There is no other way you can contribute – unless you reach an economy where everybody does their own thing and you don’t have any government. Cause that is what government is there for; to ensure that if you have more you share with those who don’t have.”
I think she needs a revenue of what taxes are for and what a governments role is
I kinda agree with Ms. Marilyn Ordonez , but there are also other means of gettings monies for this counrty. We got a lot of wealth here if the government enlighthen we belizeans about what we have here this counrty wont have to be raising taxes in so manny differnt area. Ill say to the Government official who knows what this country have in wealth is to EDUCATE to belizean people about it before is too late. This country is so wealthy that we can take A LOAN of up to 50 BILLION DOLLARS. My Belizean people wake lets take back our country. power to the people.
I wonder if our government´s cabinet really thinks of the measures it is implementing in the country. At a time like this where the global economy is fragile, super economies like USA and the EU, are cutting down on taxes and trying create more jobs for the economy to have more production, thus a better way to deal with teh shortfall in budget…but why is our governement doign the complete opposite? why is it implementing higher taxes instead of giving the popualtion a relief for better overall country production?
You do not solve a budget problem by raising tax.You do that by cutting down spending ,or come up with ways to give incentive for creating buisness that would open up jobs.You can not put all the burden on a small amount of the population.Each goverment department should identify waste , and cut back on spending.
i guess they are trying to get people to spend more to make more tax…but they are going about the wrong way as usual. SSB contributions are so little, yet they have a lot of money..wonder why that is?
I agree with you john boy/carson. This government is very much anti-development and puts so much burden on our people. Yet they purchase 100 hundred thousand US dollar vehicles for the Ministers! Its a shame! No logic. These politicians need to be schooled in New Public Sector initiatives. They know not how to get out of the hole so they punish the people that put them there. As Ras Indio rigthly sings “politicians dem a fraud, them no care about the people none at all, politicians dem a fraud, see them in dem fancy suit and fancy car……” Open your eyes Belizeans.
I know that the PM’S decision is harsh, but what we need to keep in mind that we’ll not see change(s) at the end of their turn. this propose budget will come to pass 6-8 year from now..
What really is frustrating about this country is the fact that no consideration is given to those taxpayers that are indebted in financial institutions. This being said, we are choked in the banks with our mortgages and there is absolutely no assistance from government when the annual returns are submitted to income tax unlike other countries where you’re given certain waivers for mortgages. This is the reason why many Belizeans will forever continue poor because the aid is not there. Government looks at the basic personal relief without regard to those parents who have kids in school, family medical expenses because sadly our SSB only covers employees in this country, and mortgages. This is not fair and the Belizean community must realize the urgency of forming an association or something that will fight for these things.
I guess that is what it is all about, the government ministers buy their fancy cars and let the tax payers pay for it. But you must understand, if the country does not get enough tax to satisfy theiving pocketicians, I mean politicians, and we cannot service our debts because these guys are using the money to send their children to really expensive US schools, our dollar value will fall and then we will be screwed.
A good question to ask: How many Belizeans make $24,000 BZD per year? Seriously highschool teachers with a bachelors degree barely make that
It is a fact that a country need tax money to help build a country, let’s hope that the government will take the money and use it for the progress of Belize, instead of pocketing it for themselves.
The Belizeans should see it as a chance for progress. It is smart to raised tax on the Belize wealthiest citizens, when this can raise some real money to address real budget problems there in Belize and by raising tax from the rich in Belize this could be less harmful to the Belize economy rather than cutting services.
John Boy, you’re right.
Among the problems, Belize has a way too small population to support all this not productive people working for the government: why do we need an army? what for? like in Costa rica, a better equipped police force could do the same job. Every time I walk inside a government’s office, I find people polishing nails….do we need all this people there? Better fewer but working……we could cut a lot of expenses….a lot……
I do agree with you Art, in that its the only way an economy in crisis levels off, it prompts the people to act on it, to invest and accommodate others. Basically giving room to everyone, the chance to make more of a bad situation. Moreover, if item(s) are reasonable there is a higher tendency of people spending on it, than if it was expensive. Persons will resort to spending the money else where, like going to Chetumal or Melchor and buy in bulks or engage in illegal ways of acquiring their needs. This is what the government is doing to the Belizean people. It’s pure ignorance. In history it has been proven, if a country is in crisis and you deprive your people, imposing them with higher taxes, higher prices there will be turmoil, more crime, leading to them eventually targeting the persons in power to wake up. It shows that the Government of Belize cares less of his people and are asking for that to come true.
Can someone tell me how dare the PM ask us to pay 42 million dollars more in taxes and only ask the oil company to pay 1.8 million dollars more? PM, the oil company can afford more tax yet they are being asked to pay less than us who simply can’t afford to pay more. Where is the rational man? I know you are not a finance major but rather a lawyer…so please tell me who are the idiots sitting in the ministry of finance that are advising you. How the hell did these people get there? Lone dunce!
This tax increase in GST is a consumption tax; therefore, who are the final consumers? We poor people who consume the goods. The rich will get their 12.5% back when they price their goods, the importer will, the wholesaler will, the retailer will also……so we are the ones going to pay not 12.5% but atleast a 40% on goods. Don’t let prime minister come and say they are thinking on the poor and that only those who can afford it will pay..what if we cant afford it?,,,we cant buy anything and we starve. He won’t and the rich won’t either. Why decrease import duty when the biggest importers are people like Santiago Castillo, Vega;s distributor, and Leslie’s imports (for washing machines and refrigerator?) How will that help us????nothing..only to them cause they won;t pay import duty anymore..but they will still price their goods on us at the same rate as now. Why instead of removing import duty, leave it as is and don’t increase GST? Misnister is only thinking for the rich not the poor…Business tax…the same…all businesses sucha s BEL will do is increase their rates on consumers cause it will cost them more on taxes. To hell with you Dean Barrow!!!!!!!!
Good day,
I believe that the GST increase is not that bad as it sounds. First, I think that you the consumers need to educate yourselves about taxes in a country. GST is just one of those that needs to be understood more thoroughly. For instance, the government could rake in millions more, but you know, what is the problem? The businesses that are not registered or worst yet, are registered and ask for cash sale receipts rather than invoices in their name. They absorb the additional and markup on top of that. THE GOVERNMENT SHOULD MAKE IT MANDATORY THAT ALL BUSINESSES REGISTER FOR A GST TIN. Remember, GST is a consumer TAX, not a business TAX, many businesses are just scamming the tax system and in the end, YOU and I bear that burden. There are many points I can bring across, but I believe that if we were to create an ALLIANCE amongst ourselves to educate the uneducated, (not schooling) but the ignorant, BELIZE would be a beautiful place to live in. Especially when those CORRUPTED “POLITRICIANS” do their mischievous acts such as those that are open, then we take action by JAILING them. YOU KNOW BELIZEANS ARE LIKE FIREANTS, ONE MOMENT THEY ARE ANGRY AND THE NEXT THEY ARE EATING !@$# WITH THOSE SAME PEOPLE THAT MADE THEM ANGRY….WAKE UP BELIZE….WE NEED TO PLACE EVERYONE IN THEIR RESPECTIVE PLACES AND WE SHOULD JUST, LITERALLY BE A REACTION TO THEIR ACTIONS….JAH BLESS YOU ALL……