Cabinet Discusses Expanding GST Relief on Electricity Bills

Cabinet has discussed the possibility of expanding the GST exemption on residential electricity bills, but no definitive way forward has been announced.  Prime Minister John Briceño told the media this morning that the Government would examine whether the exemption could be extended to additional electricity-consumption brackets. He did not disclose the proposed thresholds or indicate when any changes could take effect.  Love News has since confirmed that the matter was discussed when Cabinet met today. However, following the conclusion of the meeting late this evening, there has been no official word on whether the proposal was approved or what form the relief could take.  The discussion comes amid public concern over electricity costs and the wider cost of living. If implemented, an expanded exemption could provide targeted relief to households whose electricity usage falls within the qualifying brackets.  The Prime Minister was also asked whether he could personally relate to the financial hardships facing ordinary Belizeans, particularly as they navigate high fuel prices and other household expenses.

John Briceño, Prime Minister of Belize: “Today right now we’re going to bring to cabinet a paper where we want to present to increase the GST to remove the GST on electricity for consumers I think up to about $200. That in itself is going to be positively affecting our consumer. I think it’s about over a hundred thousand accounts. We understand and we’re doing the best we can with the little that we have.”

Reporter: The union senator says you or government officials like yourself are unable to relate to the affordability price.

John Briceño, Prime Minister of Belize: “If you don’t relate to people then they vote you out and so we understand the challenges. We know that it is tough that’s why we’re doing everything possible to help us so don’t you dare and I challenge Mr the senator don’t he dare him come and tell us that we don’t understand, we have a better understanding than him because he does not walk the streets of this country the way we walk. And when he can walk on our shoes then he could talk. Right now he’s been elected as a senator and profile but let him walk the streets. Let him walk in the villages and understand what it is to live in a village where you don’t have electricity, where you don’t have water, where sometimes because the road is so bad you have to walk to be able to take your children to school. When you understand that then let’s talk.”

The proposal would expand the existing relief measure rather than introduce an entirely new initiative. Residential electricity bills of one hundred dollars or less are currently exempt from GST, while low-income households enrolled under the Social Rate category also do not pay GST on their electricity bills.  Love News will continue following the story and provide further details once Cabinet’s position is officially communicated.