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Cordel Hyde: Tax the Beer, Not the Poor
posted (June 17, 2005)

And while the Prime Minister bristled at Espat's reproachful review of the Ashcroft/GOB relationship, that wasn't the end of the backbench bombast. When the bill to increase the excise tax by 50% was presented, the PUP's Lake Independence representative, Cordel Hyde stood to make his position clear. Hyde opposed the last increase in March, and today said that he also opposed the first Increase in Cabinet before he resigned in December. Well now, the government plans to take that excise up to $6, more than 300% of what it was a year ago but still half of the $12 dollars that Hyde has repeatedly called for. So today, it wasn't surprising that he said it isn't enough, it's how he said it. Here are those remarks.

Cordel Hyde, PUP Lake Independence Rep.
"Madam Speaker I don't know how many ways we have to say it but this token increase on the beer tax is not cutting it.

On March 18th when I opposed the Brewery Amendment Bill in this House it was because it did not go far enough. That bill raised the excise tax on the beer company $3.60 to $4 instead of the $12 where it was in 1998.

Madam Speaker the economic times are such that there can be no sacred cows, there can be no exemptions on the special interest. Madam Speaker I ask this question of the front bench and those who propose to support this amendment. Have the financial conditions improved such that the government can afford to settle for only $6 a gallon, to settle for only $12 million revenue instead of $25 million that they would fetch if they raised the tax to $12?

All indications are that things are not getting better in this country, they are getting worse.

But this government will not, and it appears cannot, increase the excise tax on beer to the 1998 level eventhough they need the money and eventhough Mr. Bowen benefited from over $80 million in tax cuts over the last 6 years; a whopping $80 million in tax cuts. Madam Speaker a responsible government would not forego a single dollar of potential revenue, especially from a so-called special interest. The same way we could have given the company a massive rollback of their taxes from $12 to $1.80 in 1998 and direct the Customs Department to enforce this beer monopoly, the same way we can prevent this increase in the beer tax from being passed on to the consumer.

When the beer company got the tax cut in 1998, the cost of beer dropped a quarter, a solitary shilling. But when the beer tax was raised to $4, ½ of what it was in 1998, the cost of beer was increased by 50%. Everybody from the government's technical team to the social partners to the Opposition to my colleague the representative from Albert has been telling the government the same thing, raise the excise tax on beer to $12; tax the beer before you send home public officers, tax the beer before you tax the poor. But for whatever the reasons, the Government has been pussyfooting around the issue.

The government can collect upwards of $25 million from the beer tax if they raise it to $12 but they prefer to collect $13 million. Government needs to revenue, but as usual, it is the poor who will foot the bill.

Madam Speaker, the government has said that it is planning a "review of the tax system to make it more broad based," a review that most Belizeans believe will result in more taxes on the most convenient victims: the working poor, the disadvantaged and the middle classes, those who can least afford another penny in taxes.

Madam Speaker, in this bill the Government is saying forget about social justice and equity, forget about the poor, we need the money but we can't tax the rich. Madam Speaker the government should stop putting the special interest ahead of the national interest.

The government could save hundreds of poor people's jobs but it won't just because raising the beer tax to the 1998 would make some special interest annoyed. Many others are paying more taxes than they did in 1998 but poor Mr. Barry, he can't afford it. The rest of us are fools you see. Madam Speaker, I cannot support this beer tax, it just does not go far enough."

At the end of those remarks, there wasn't much a clearly beleaguered Prime Minister could do, other than laughingly issue a cryptic remark. Here's what he said.

Prime Minister Said Musa
"Madam Speaker it is become very clear today that the Opposition's work is being done for it [Laughter in the House] by others. Democracy is in full bloom in this House today. But you know if you can't stand the heat you must get out of the kitchen."

What does that oblique comment mean? Well, we couldn't quite figure who's in the kitchen with all that heat and who has to run from it. But after the meeting the Prime Minister said that as leader he could not comment on whether he would expel Espat and Hyde from the party. But the two representatives did comment on their own future and we'll have those remarks, plus commentary from the Leader of the Opposition later on in the newscast.

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