Belize's Unions Call Off Strikes After Tax Measures Are Delayed

by Mike Godfrey, Tax-News.com, Washington

15 February 2005

Belizean Prime Minister, Said Musa has agreed to delay the introduction of new budget measures until March, bringing to an end weeks of protests and strikes by both public and private sector organisations opposed to tax hikes.

Under an agreement reached between the government, the National Trade Union Congress and the Central Bank on Friday, union members have promised to return to work if Musa agrees to reconsider the tax measures proposed in last month’s budget announcement, which it is argued, will adversely affect the poor and place an additional burden on business.

However, Dylan Reneau, president of the Public Services Union, has warned that the truce with the government will be temporary unless the union’s own fiscal recommendations are endorsed.

"We reserve the right to protest if this government does not honor or adhere to our recommendations,” Reneau was reported by Dow Jones Newswires as warning.

The budget, unveiled last month by Musa, (who also acts as the country’s Finance Minister), contained proposals to raise taxes on businesses, banks, real estate agents, casinos and professionals, in addition to increases in environmental taxes and sales tax on luxury items.

The proposals led to a series of protests over the past five weeks by business, teachers and other public sector workers, and Belize City was left without water for a period as a result.

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