Tax team begins countrywide G.S.T. education campaign
With the General Sales Tax set for implementation next April, this week tax officials are hitting the road on a countrywide forum to explain the ins and outs of the new system. While government representatives maintain that the mechanism for the G.S.T. will be very similar to the Value Added Tax that was repealed in 1999, this time around, the rate and list of exemptions will be different. The new tax proposal was presented in the House of Representatives in November and has yet to be debated, but already, there are businesses hoping to capitalise on the public’s ignorance about the levy. With that in mind, today the official tax team held an information session in Belmopan. News Five travelled to the capital city this morning for that forum, and as Karla Heusner found out, questions focussed on how the G.S.T. will affect the cost of doing business in Belize.
Beverly Castillo, Commissioner of Sales Tax
?The main question they have is what effect it is going to have on the productive sector. We did identify that the current Sales Tax had some problems on the productive sector, and that is one of the reasons for a G.S.T.; just one of the reasons. And so we are hoping that will bridge that cascading effect that the tax had on the productive sector. There were some more concerns that were raised and we are hoping that we could address those.?
?We want the average consumer to know everything and that is the purpose of our public forums. So our forums will be countrywide. It?s on television. I know tomorrow we?re in Orange Walk and Corozal, the following day in San Pedro, Dangriga; this week. Next week we start in Belize City. So it is for the consumers.?
?G.S.T. cannot be added on at this point. It comes into effect on the first of April. It?s an offence to charge the tax even before it comes into effect. If the G.S.T. is charged, then we will certainly have to address this issue. If it is charged and collected, then government will want to look at how we mitigate those losses to the consumer.?
Zero rated goods under the G.S.T. include rice, flour, beans, fresh milk, tortillas, eggs, sugar, fresh fruits, fresh meat, cooking lard, and margarine as well as some medical supplies. Exempted services include financial services, rent, education and water from B.W.S.L., as well as domestic transportation. The accounting cycle will be one month and filing date will be the fifteenth of every month. Any business making more than seventy-five thousand dollars annually will need to register as a G.S.T. agent and will be able to reclaim their G.S.T. from the government. The Sales Tax Department invites any industry or group which would like a presentation on the new tax to contact their office. If you would like to view or download a copy of the G.S.T. Bill you can go to www.printbelize.com and click on “other publications.”
