Private sector presses attack on business tax

While rubber boots and umbrellas were out in force on the streets of Belize City today, those implements may not protect Prime Minister Manuel Esquivel from the rain of criticism which has greeted his proposal for a new business tax. One sign that the P.M. may be reconsidering the measure, which replaces corporate income tax with a gross receipts tax on all business enterprises, is that the meeting of the House of Representatives scheduled for this Friday has been abruptly cancelled. Meanwhile the Belize Chamber of Commerce and Industry, the group spearheading the opposition to the tax, has received a commitment from Esquivel to meet with a small group of members in Belmopan on Thursday, June fourth as well as the general membership on June twelfth at the Biltmore Plaza. While Friday’s House meeting has been cancelled, Tuesday’s committee meeting to consider the tax bill will proceed, although the Chamber will petition that body for an extension so the private sector may have more time to formulate a position. Critics have called the new levy unfair in that it taxes businesses regardless of profitability, does not account for past losses due to be carried forward, discourages charitable contributions by making them no longer deductible, destroys incentives for investment and contributes to general price inflation. Tuesday’s committee meeting begins at ten at the National Assembly. The public is invited to attend.