BELIZE CHAMBER OF COMMERCE COMMENTS ON CABINET DECISION BELIZEANS TO ENTER FREE ZONE

October 25, 2007

The Belize Chamber of Commerce and Industry today commented on a recent cabinet decision to allow Belizeans to enter the Free Zone to shop on November 17^th and December 15^th respectively.  A release from the chamber says that they see cabinet decision as an acknowledgement that the punitive tax regime is the main cause of high prices within the Belize Customs Territory. However the chamber does not see Government’s recent announcement as a serious attempt to address the issue of high pricing. Companies operating in the free zone do not pay business taxes or import duties nor do they charge sales tax. Additionally these companies enjoy duty free fuel and many other duty and tax breaks on operations. On the other hand companies in Belize are subject to extreme levels of Government taxation including business tax, sales tax, import or excise duties high fuel taxes and municipal taxes.  The Chamber says that the recent government decision will not address the fundamental challenges employers and consumers face in Belize. Further more it will compound the effects of an already bad year for producers and retailers unable to effectively compete with cross border trade currently encouraged by the governments high tax regime. In conclusion the chamber challenges the government to tale the more profound and concrete decision to being employing prudent fiscal management in order to allow aggressive reductions in taxes and duties which will allow Belizean consumers the benefit of lower prices without the added expense of having to travel to the Free Zone.

|

|