B.T.I.A.: New G.S.T. tax will hurt local hoteliers

Belize’s biggest industry–tourism–is reacting negatively to the newly passed General Sales Tax. In a press release today, the Belize Tourism Industry Association, speaking in support of the hotel sector, said it did not accept the classification of exempt status under the G.S.T. legislation. Exempt status means that while hotel accommodations will not draw the ten percent G.S.T., hotel operators must still pay the ten percent tax on goods and services they purchase for the building and running of their hotel. The result, according to B.T.I.A. President Lucy Fleming, is that costs will be driven up, putting the industry at a disadvantage against competing destinations. The B.T.I.A. is seeking to be given zero rated status, under which input taxes paid will be recoverable from government. The tourism industry is one of a number of private sector groups unhappy with the G.S.T. who maintain they will be unfairly treated under the new system which is set for implementation on July first. Government has said that it will use the six month period between now and that date to assess any concerns with an eye to reforming the entire tax system to promote greater equity and efficiency.