Some more Belize news
POLITICS-BELIZE: NO TAXES FOR LOW INCOME EARNERS
BELMOPAN, (Jul. 22) IPS - Prime Minister Manuel Esquivel has made
a move which is likely to guarantee him another five years at the
seat of government in this capital city as Belizeans go to the
polls next month to elect a new government.
In a recent announcement in front of some 15,000 supporters which
was aired by national radio, Esquivel stated quite clearly that
beginning immediately, Belizeans who earn less than $10,000 per
year will no longer pay income tax. So many teachers, nurses,
police and public officers, as well as soldiers will find
themselves saving approximately 25 percent of their salaries that
they would normally pay in income tax.
Some 48,000 persons are set to benefit from this move -- a move
which has invited both praise and criticism.
"I welcome the income tax relief which allows me to have more
money," said one Belizean who did not want his name to be
mentioned.
But the opposition People's United Party (PUP) has been one of the
first ones to attack the move. "It pretends to relieve the average
worker but instead burdens him or her with higher prices and less
opportunities for earning a living," said the PUP in a news
release.
The PUP says while government is abolishing income tax for some
categories of workers, the amendment in the business tax will mean
that additional costs will be passed on to the consumers so what
they will save on income tax will go back into paying more for
goods and services.
"The government gives it in one hand and the merchants will take
it in the other in higher cost of goods," said one Belizean who
requested anonymity.
"The effect of the gross receipt tax on business will result in a
much higher cost of living for these same (low-income) people, and
in the end they will be worse off," said the PUP statement.
Whereas in the past companies were charged 35 percent on net
profit, they will now be required to pay tax on gross sales or
receipts.
The additional amount which will be collected from businesses
should cover the shortfall from the income tax. Income tax
collected for the last financial year of April 1, 1997 to Mar. 31,
1998 brought in approximately $14 million.
Last year workers who were earning less than $5,520 per year were
excluded from paying income tax.
But the ruling United Democratic Party (UDP) said it is not only
pinning its hope of re-election on this move to abolish income tax
for some workers, but also added that its achievement over the past
five years would also allow Belizeans to see that it deserves
another term in office.
The PUP said it has created 5,500 jobs since it was elected to
office in 1993 and Gross Domestic Product (GDP) has grown by 2.9
percent.
"Inflation (has) declined, the balance of payments has improved
and reserves have strengthened," said Esquivel. "Our dollar remains
the only currency that has not suffered devaluation in the entire
region." he added.
It now takes two Belizean dollars to purchase one US dollar whereas
in the northern Caribbean island of Jamaica, it takes just under
$36, in Trinidad and Tobago six units of the local currency and in
Guyana $135.
Inflation in Belize now stands at one percent.
|
