Barrow: Read my lips, I will not raise taxes…except for gas taxes.
According to the Economist Intelligence Unit, the GOB has pledged not to raise the general sales tax (GST)in the 2010/11 financial year.
This decision was made even though the IMF, in their latest report on Belize’s economy, recommended raising taxes to forestall a forecast budget deficit of 1.8% of GDP in 2009/10. The IMF had recommended that the GST from 10% to 12.5%.
He's Smiling because someone else pays for his gas.
Dean Barrow has stated that he will not raise the GST but he has shown financial discipline by taking the unpopular decision of raising the petrol tax. The price of gas in Belize has skyed to more $8.31 Bze/gallon. A significant portion of this is tax, but the price is still significantly less than it was in mid-2008 when the price oil peaked on the world markets. Inevitably, this higher gas prices will decrease consumption and the government will once again be in the position of having to find revenue. In the short term, however the government expects to raise $30M Bze. The likely solution will be to finance their projected debt through increased borrowing. Belize already has a high debt to GDP ratio of about 90%, expect it to become worse.
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I support the increase in the petrol tax but i also support reform in how the petrol tax is applied i believe that the tax should fall heavier on wealthy Belizeans and even middle class Belizeans who for some reason or the other decide to purchase sport utility vehicles with low fuel economy, this increases the demand for fuel and also more than likely has an impact on acquisition costs. I believe that the tax should be increased for importing vehicles with high fuel consumption and lowering the tax for those people who decide to import a more fuel economic, clean burning vehicle. Overall Belizeans needing to start taking responsibility for their actions and if paying higher taxes is one consequence so be it. I am all supportive of the measures this government has put in place.
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