7 News Belize

Fin Sec Acknowledges; Tax Increase Coming
posted (February 10, 2017)
Yesterday, the Ministry of Finance met with the Belize Chamber of Commerce and others within the business community to discuss the upcoming budget. Government is consulting with the social partners on ways to balance public finances which would not require increased taxes.

Well this afternoon, it was the Labour movement's turn to speak with the Government on their budget recommendations. Those discussions continued at the Biltmore all the way up until 4:50 this evening. Financial Secretary Joe Waight stepped out to grant us an interview before the meeting concluded.

This evening, with just weeks to go before the reading of a new budget, the Fin Sec finally addressed the matters squarely - after months of evasion by other officials. Here's how he put it:

Joseph Waight - Financial Secretary
"We need to show an adjustment effort combine in region of, it's measured in percentage of GDP and what we are aiming is to do an effort that will be about 3 percent of GDP, roughly about a hundred and 5 million dollars that is through efficiencies, through some tightening of reductions in expenditure and through some adjustment in taxes."

Daniel Ortiz, 7News
"In terms of where we are at this time, what are the projections in trying to get to that area of 3 percent?"

Joseph Waight - Financial Secretary
"Well at the moment, our expected out turn this year is the negative 0.6 percent. What we need to show is an effort of 3 percent. I will take that negative 0.6 percent up to about 2.4 percent."

Daniel Ortiz, 7News
"Sir, speaking frankly, the concern is that no matter how much the government reigns in spending there is just, the situation that you will have to at some point increase taxes."

Joseph Waight - Financial Secretary
"We can't rule out, it is very likely to be a tax increase. What the components are? We don't know just yet, that's still in the process we are going through but I think that at this point in time it is inevitable that there will be an increase in some taxes. We are trying to see what items that can least impact the economy, but at the same time generate the resources needed. We are trying to seek the views, exchange of views, recommendation, and input from the stake holders in lead up to the coming budget which goes into effect the first of April of next year. As you know the message is that we need to stabilize our fiscal situation. We need to stabilize our debt situation and therefore the budget coming up will be a budget with some consolidation in it which we are trying to improve the fiscal performance. Therefore, stabilizing fiscal first which would then contribute into stabilizing a debt situation."

Daniel Ortiz, 7News
"Share with us some of the ideas that they that the 2 social partners have shared with the government as to how to reign in public spending and stabilize our physical situation."

Joseph Waight - Financial Secretary
"The business community, essentially give valuable input, story being that they were concerned that whatever measures the government takes is equitable, easy to implement and would not retard or depress growth. They said that the government should try to improve its administration, its efficiency first before moving to taxes or increases taxes in that case. The unions are saying the same thing that there's room for government to tighten his belt. Of course they are also concerned about what they perceived to be in efficiencies and maybe inequities in the system. We get ideas from them but at the end of the day what we plan to do is put everything together and see how it matches and then take that back to cabinet and report that to our principals."

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