Belize Goes On Strike In Protest Against Tax Plans

by Mike Godfrey, Tax-News.com, Washington

24 January 2005

Businesses, employees and public workers came out on strike in Belize last week in protest against tax increases proposed in the government's most recent budget.

The budget, unveiled earlier this month by Prime Minister and Minister of Finance, Said Musa, proposed a series of tax hikes on businesses, banks, real estate agents, casinos and professionals, in addition to increases in environmental taxes and sales tax on luxury items.

Responding angrily to the proposals, the 200 members of the Belize Chamber of Commerce voted in favour of a two-day strike which began last Thursday. The strike was supported by other businesses and public workers, leaving Belize City without water.

Appealing for calm, Musa attempted to explain in a budget address that taxes are substantially lower now than under the previous government.

“The budget I read in the House proposes that the general sales tax remain at 9%. Yes, we have proposed a raise of 2% in the environmental tax and even if you accept the propaganda that this is the same as a sales tax… it would be tantamount to an 11% general sales tax, still a hefty 4% less than under the UDP,” he announced in an address to the nation.

Musa was also critical of the business community, noting that: “It is incredible that a leader of the Chamber of Commerce should reveal that businessmen routinely pass on the business tax, which is meant to be a tax on wealth, not on sales, to the people of Belize.”

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