Editorial - Is San Pedro getting any "Bang" out of its tax buck?

The Island Newspaper, Ambergris Caye, Belize            Vol. 14, No. 6            February 19, 2004

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Our politicians love the catch phrase, "We are living in a good country." While I do not doubt that in their minds they believe this, I believe their lifestyles, actions and income keep them far removed from the reality that the average Belizean faces on a daily basis. And for anyone who doubts this, reading the budget speech recently presented by Minister of Finance should convince you.

    Let's start with the increase in Sales Tax. My concern here is not whether it is justified or not, but the matter-of-fact way it was announced, and the way it was almost immediately implemented (nine days later). No public announcement, just hurried phone calls from the Sales Tax Department (in some cases a message was left on an answering machine) to businesses on Friday, January 30th informing them the tax increase would come into effect on Sunday, February 1st. No concern about the havoc caused to the thousands of businesses who had only two days to make the necessary adjustments. No concern about the thousands of tourists who were quoted a price for their vacations or the resorts who had to increase already quoted prices or else be forced to eat the difference. Also, no concern for the businesses that had goods already cleared at Customs (with duty and sales tax already paid), who were told that their merchandise would be held until Monday so that an extra one percent could be added onto their total bill.

    A financially depleted government scrambling for revenue, suddenly becomes a very efficient government. Tax was also doubled on rental income, and the amount of taxable rent was lowered from $1,600 per month to $800 per month. And while we're at it, how about how the GOB removed San Pedro from the definition of a town (for land tax purposes), so that they could assess undeveloped land at $10,000 instead of the previous $100. With these new tax increases, along with many others before them, it is time to ask, "Is the island of Ambergris Caye getting any bang for its buck?"

    Several months ago, local businesses, the AC Chamber of Commerce and the People's United Party Executive Committee rallied in full force when trade licenses were raised. Many felt the increases were too high while some felt their assessment was unfair. The Mayor and San Pedro Town Councilors agreed to review the assessments and to meet one-on-one with anyone who felt their increase was not justified. Thumbs up to the local community for fighting for their rights and to our local government for following the democratic process. It is now time for these organizations as well as the Belize Tourism Industry Association, the Belize Hotel Association, local businesses, and all the citizens of Ambergris Caye to fight, at the national level, for the money the island is entitled to. The money paid for trade license fees stays in the community but the millions, upon millions, upon millions sent to Belmopan never seems to make its way back to the island. Even though the Department of Works is using tax money to fix all the roads in the country, islander's must find another source of revenue to fix San Pedro streets (By the way, where is the $1.2 million promised for cobblestones over a year ago?). While Ambergris Caye businesses are, by far, the breadwinners for the entire country, this island is like a forgotten stepchild when it comes to receiving the funds necessary to support the improvements needed to sustain its tourism industry. Nobody is complaining about spreading the wealth to the less fortunate districts in the country - that is expected and fair. But, Central Government needs to realize that island residents cannot continue to subsidize all the needs of the community (roads, government employees, hospital, etc.) while paying the lion's share of taxes, without receiving any benefits from the taxes collected.

    Unlike local government representatives, who are directly elected by the community they serve, we have no leverage with ministers in Central Government. These elected officials' loyalties lay within the party and district they serve. The island and its residents are seen as non-entities whose money is to be used to satisfy the needs of Minister's constituents and for their own personal agendas. As long as the Minister keeps his party and the few thousand constituents in his district happy, they retain their power (Our Prime Minister was elected by 2,000+ people out of a population of 250,000). The welfare and needs of Ambergris Caye are not much of a concern to them - only how much milk they can siphon from the "cash cow" interests them. Ambergris Caye did not receive its fair share when there was a PUP Area Representative and Town Council, and it cannot expect to be any better off (financially) in the future unless residents and businesses unite and stand as one.

    It is time for private citizens, business owners, BTIA, BHA, AC Chamber of Commerce and all those who showed such outrage at the increase in trade license fees to unite and fight for a fair share of Belize tax money. Maybe the PUP Executive Committee could volunteer to write letters again, this time from local business owners to Central Government, like they did when the trade license fees were raised. We all need to do whatever we can do for the betterment of "La Isla Bonita". Residents cannot continue to pay skyrocketing taxes AND continue to subsidize improvements to the island; especially those that should be paid for with tax dollars already collected.

    While it might be a "good country," (especially for our ministers and their cronies who own fancy mansions and new cars), I believe the rest of the population would like it to be a "fair country."



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