No New Taxes For Belize, PM Says

by Mike Godfrey, Tax-News.com, Washington

18 February 2011

Discussing fiscal policy ahead of the Budget, scheduled for March 11, Belize Prime Minister, Dean Barrow, said the government is planning no new taxes in the coming fiscal year as tax revenues rebound.

During a question and answer session with journalists Barrow disclosed that in the previous year the deficit had narrowed significantly, and following a surge in tax revenues, an increase of BZD44.5m (USD22.8m) over the year to BZD554.8m, Belizean finances appear in good shape.

General Sales Tax receipts, while below target, grew by just under 17%, with the tax-take from business taxation and royalties combined nearly doubling year-on-year.

“We are moving right along and we expect that this will be a good budget. Certainly and principally because I repeat what I said a couple of weeks ago; there are going to be no new taxes for the Belizean people for this fiscal year,” Barrow announced.

During the session, Barrow conceded issues with high fuel prices, and indicated that, while difficult, the government would look to reduce taxes on fuel in the forthcoming Budget, possibly through a temporary reduction in the applicable GST rate. However, Barrow said to maintain fiscal balance, tax cuts would, as ever, need to be offset elsewhere.

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