Amendments to the Taxation of Belize

05.07.2012 In a recent budget of Belize provided on the financial 2012/13 years, there are a number of proposals to restructure the tax regime of the country.
Reforms to the tax system relates to the import of petroleum products. The government has canceled a general sales tax (General Sales Tax - GST) and instead uses the specific rates of import duty on the three main types of petroleum products. In particular, the amendments provide loans GST to companies and individuals who use the fuel in the implementation of their economic transactions.
Thus, the reform is intended to provide tax revenues at the same level, despite the significant drop in crude oil prices.
However, the Government of Belize has indicated a number of unintended distortions in the return of the sales tax. The Government of Belize has obtained a number of inquiries from companies for the return of the former regime, which consisted of a combination of general taxes and taxes on imports. Fees imposed by the budget, return GST on fuel, lower import duties on the amounts and the abolition of the Special Loan GST.
After nationalization Belize Electricity Limited company, the Government announced amendments to the tax law Business Tax Act, to reduce the tax rate on institutions that are licensed to provide electricity from 6.5% to 1.75%.
Also, the Government abolished the tax on hotels / hotels and tourist accommodation (Hotel and Tourist Accomodation Tax), and imposed regulations on the provision of goods and services, providing in a hotel at a rate of 12.5%. It is expected that the change will be effective from January 1, 2013.
Other amendments to the budget include measures to liberalize the trade regime of the country. According to amendments, 62 items of 121 commodities will be removed from the list of required products for imports. Instead, it will be charged an additional temporary rate of 20% of those commodities for the period of transition, which is twenty-four months in order to protect local industry from this change.

Expert’s opinion

As we see, the Government of Belize's seriously approach to the issue of formation of the state budget; in particular, it concerns the reform of the fiscal functions of the state.
It is proposed to levy imports of petroleum products under the old scheme. Apparently, changes in the last year have failed.
Let me remind that the economy of Belize is based on income from tourism. In this regard, the amendments also affected the tourism sector. It can be assumed that the innovation will reimburse the hotel business overall sales tax on general grounds.
Let's see what will happen next year, there will arrange all the new rules and how they will be effective.

On the basis: http://www.belize.gov.bz/

Natalie Dambieva ( the paralegal of Moscow office of Honest & Bright )