7 News Belize

Caribbean Context For City Taxes
posted (August 12, 2015)

A week ago, we showed you our interview with Belize City Mayor Darrell Bradley in which he explained that after 2 years, the joint task force commissioned to look into the trade licenses and property tax regime has decided to offer a major reduction. The task force, which is made up of City Council Staff and members of the Business community, continue to consider ways to overhaul the system so that it becomes less arbitrary and burdensome on small business owners.

Today, the Caribbean Local Economic Development Project (CARILED) facilitated a workshop for both sides to explore other options with the vision and experience of an international expert, who provided the context of tax models in other Caribbean municipalities. We stopped in and found out more:

Darrell Bradley - Mayor, Belize City

"Today what we're doing is we've had an international consultant coming in, sponsored by CARILED; and what they're doing is they're looking at the discussion and seeing where we are in relation to getting consensus in relation to both the private sector partnership partner and the municipal in moving forward."

Daniel Ortiz

"Sir, the last time we discussed with you, you told us that the plan was to decrease by 50% initially. Does the task force say that, that is enough?"

Darrell Bradley - Mayor, Belize City

"Well one of the things that we've looked at is, I think that is an initial and very powerful first step; but in terms of wanting to promote the kind of business climate in Belize City, it has to be much more comprehensive. We have to look at if you pay trade license at a reduced rate, 12%; what do you get in terms of value for that?"

Daniel Ortiz

"Is that enough?"

Leidi Urbina - National Coordinator, CARILED

"Well, the enough word will have to come from the private sector."

Artuo Vasquez - President, BCCI

"I heard that I think the same time you heard that. I think he's trying to look at the way of maybe reducing the cost so to speak, while the whole regulation is looked after. Just in this session here the consultant here was not too happy with that decision either. She thought that, that was just reducing a cost of a procedure that is still not the best one."

Leidi Urbina - National Coordinator, CARILED

"What I can tell you is that the process that is being taken to understand the needs of the private sector is what is key. Understanding that it's a comprehensive overhaul, I would say of the reform of the trade license act. So that in the long run; it's feasible and sustainable and both parties are happy. The private sector and the municipality."

Darrell Bradley - Mayor, Belize City

"But one of the things that they have said is that, they believe that the rate is arbitrary in terms of how it's prescribed and also that the physical rate is too high, 25% is too high. So I think as an initial first step, not looking at the whole comprehensive review that needs to take place. We need to cut the rate to a figure that is acceptable and a figure that encourages people to come into Belize City and to start a business. And I think that, that rate is 50%, half of what it is currently."

Daniel Ortiz

"What in your opinion would be the fix or do you have an idea of a fix for this issue?"

Artuo Vasquez - President, BCCI

"Well I can speak from the part of the chamber. I think that what we had try to do over the last couple of years is to gather as much information as we can with businesses and revenues and company sizes. And I think the best thing for us would have been to put businesses in different categories and also having to do with sizes and then you create tarry for a tier that businesses would pay a trade license based on their size and the type of business they operate."

As you heard in the interview, the 50% decrease in the trade license fees is only the initial step, and it is not being considered as the final fix for this problem. The mayor did not give us a timeline of when this relief will be rolled out.

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