Belize Tax Reform Committee Recommends New Tax

by Leroy Baker, Tax-News.com, New York

26 September 2005

The Belize Tax Reform Committee has found a general consensus supporting the introduction of an ad valorem tax, a recommendation that the government is likely to take up provided the tax operates fairly, Prime Minister Said Musa announced last week.

In his State of the Nation address, Mr Musa noted that the Tax Commission is completing its work of analyzing the tax system and recommending changes to the tax structure and administration. The formal report of this Committee is expected shortly and will form the basis of tax reform measures to be implemented in the next fiscal year.

"This Committee has found general consensus for introducing an ad valorem mechanism, and we will go ahead with such a recommendation provided that the mechanism is fair, simple and predictable," stated Mr Musa.

The Prime Minister added that the government has introduced monthly reports on fiscal performance and information and plans to continue to publish this information regularly so that the public can monitor the government's performance in this area. He also announced that the Treasury Department is being reorganized to improve services to the public and to enable the Accountant General to prepare proper and complete financial statements within the timeframe required by the Finance and Audit Reform Act.

According to Musa, the Belizean economy has been fairly stable over the past year, with GDP having grown by 4.4% in the first half of 2005 due to strong growth in trade, fishing, tourism and manufacturing, which has helped to reduce unemployment by 0.6% over the year ending April 2005.

Meanwhile, the companies in the EPZ Program and in the Fiscal Incentives Program, have provided new employment for over one thousand Belizeans, Musa said.

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