Government Waives GST for Four Days to Ease Christmas Shopping Costs

The Government of Belize has announced a holiday initiative providing relief to Belizean consumers during the Christmas season and combating the rising cost of living.  For the first time, General Sales Tax (GST) will be waived on all local retail sales of standard-rated goods on four key shopping days: December 14, 15, 21, and 22. This move will allow Belizeans to purchase goods in shops and stores across the country without having to pay the usual 12.5% tax. The endeavor is part of a broader effort to ease the financial strain on citizens amidst inflation pressures. The announcement was first made on The Morning Show by Minister of State for Finance Christopher Coye, who spoke on the rationale behind the decision and its significance. 

Christopher Coye, Minister of State, Ministry of Finance: “There is still the reality of inflation. as much as inflation has come down, it has come down to as low as 2%, 2.1% in October, it is still a reality that impacts the cost of living of the everyday citizen of Belize. So we have spent a lot of time looking at what can be done and what can be done more taking a market approach rather than looking at subsidies that create perverse results. So in looking at that one, especially in this time of Christmas, what we’ve decided to do as the Cabinet in its discretion is to provide effectively GST tax-free holidays in the last two weekends before Christmas. What that means is all goods that have been subject to the twelve and a half percent tax for those weekends will not be subject to any Tax any GST and that’s effectively a twelve and a half percent discount to the consumer right? In terms of rebate and value or benefit to the consumer we project that that’s actually roughly five million dollars and that will effectively remain in the hands of the consumer. That’s a substantial benefit to the consumer, but it’s also a substantial benefit to local business.”

In addition to the GST waiver, for the entire month of December, picnic shoulder hams, smoked ham legs, and imported turkeys will be exempt from GST. Minister of State Coye also noted that shoppers are advised to be vigilant when making purchases, checking their receipts to ensure that GST has not been incorrectly applied. 

Christopher Coye, Minister of State, Ministry of Finance: “For Christmas dinner, for Christmas season so for the entire reminder of the month of December that will be GST free so it won’t be just for those weekends it’s for the rest of the month.”

Rene Villanueva Sr, Host, The Morning Show: Local and imported ham and turkey will be GST free from when to when ? 

Christopher Coye, Minister of State, Ministry of Finance: “From now until the end of December. “

Rene Villanueva Sr, Host, The Morning Show: So from today until the end of December ham and turkey no GST. 

Christopher Coye, Minister of State, Ministry of Finance: “No GST.”

Kareem Musa, Minister of Home Affairs: “Even if you’re like Chief and myself who would have ham and turkey after Christmas it will still be GST free up to the 31st. “

Rene Villanueva Sr, Host, The Morning Show: From the 9th of December of December to the 31st of December ham and turkey, whole month of December GST free. 

Troy Gabb, Host, The Morning Show: So immediately your turkey has gone down by twelve and a half percent and just to put that in perspective if the turkey was $100 you would be paying $87.50. 

Christopher Coye, Minister of State, Ministry of Finance: “Something like that.”

Troy Gabb, Host, The Morning Show: But just to give the people a feeling of how impactful the savings is going to be. 

Christopher Coye, Minister of State, Ministry of Finance: “Like I say we encourage local businesses to market the discount but also to couple their own discounts. It’s Christmas season so they typically put in their discounts.”

Troy Gabb, Host, The Morning Show: Yeah and if they put on like say another five or ten percent discount on that to kind of ….you’re looking at twenty something percent discount that is significant in its own self. And so you’re looking at a saving of around $5 million dollars globally in the economy. 

Christopher Coye, Minister of State, Ministry of Finance: “Just the government tax rebate basically.”

Certain products are explicitly excluded from the waiver, including motor vehicles, gasoline, diesel, LPG, firearms, ammunition, cigarettes, and alcoholic beverages. The waiver also does not apply to services which will continue to be subject to GST. Additionally, importers will still be required to pay GST to Customs for imported goods, and businesses that are GST registrants must ensure their accounting systems are prepared for the zero-rated days.