P.U.P. says it will oppose increase in business tax…
There will be several Bills on the table at Thursday’s sitting of the House of Representatives, which is expected to bring robust debate. Key among them is the Bill to Amend the Income and Business Tax Act to increase taxes by five point five percent on telecommunications and on Public Investment Companies from eight to twelve percent. The position of the largest telephone company, Telemedia, is well known and today the Peoples’ United Party weighed in on the tax increase. Albert Area Representative, Mark Espat, explained what the impact of these amendments could have and why he will aggressively object them at the House sitting.
Mark Espat, Albert Area Rep.
“Those amendments seek to increase the rates on the banking sector—one two banks—and the telecommunications sector and unbeknownst to us, it also seeks to increase the taxes in the tourism industry and on the real estate sector. Our party, The Peoples’ United Party, had announced last week that we would be consulting with stakeholders in these subsectors of the economy before arriving at a position and today we have made public that fact that in the House and in the Senate, the fact that the party intends to oppose these taxes. Now let me explain to you why. In the case of the tourism Industry and the real estate sector, I think it is well known that due to the deep recession in the United States and in fact in the World, that our tourism hospitality industry and the real estate sector is under tremendous pressure. In fact, by the admission of the Statistical Institute, the tourism industry declined during the first half of this year and the challenges to the real estate sector are severe and so we feel that these taxes are as ill-conceived as they are ill-timed and we demand that the government withdraw these taxes.”
“In the instance of the taxes proposed on two of the countries largest banks, which together hold a significant portfolio of loams, especially in the productive sector, we ask the government is there a guarantee that interest rates on borrowers will not go up? Is there a guarantee that if those rates were to go up, that jobs will not be lost and that Belizean families and businesses will not be affected? There has been no such guarantee.”
“In the instance of the telecommunications sector, having heard from the two principal companies, having also engaged with the communication workers union, the party feels that the responsible position is to oppose this significant increase from nineteen percent to twenty-four point five percent in business taxes because we feel that the increase will put at risk the tens of millions of dollars that the two companies are making, especially to cover rural areas, over seven hundred jobs depend on this industry, we also lament the fact that the government is not prepared to guarantee that telephone rates will not go up and everyone either has a mobile phone, use the internet, or have a fixed line.”
