Lessons Learned from GST-Free Weekend Will Improve Upcoming Weekend

The Belize Tax Service Departmentsays it learned several lessons from the first-ever GST-waiver weekend. On Saturday and Sunday, shoppers across the country flocked to stores to take advantage of the 12.5% tax relief and stock on groceries. However, while many were able to capitalize on the GST-free goods, dozens of shoppers reported visiting stores that did not want to comply. Some businesses sought to issue receipts with the wrong dates, while others reportedly still charged shoppers GST. Today, Prime Minister John Briceno spoke on the hiccups and what is being done to iron them out for this coming weekend. 

John Briceño, Prime Minister: “Well, I think that this GST weekend,  free GST weekend I think has had some other unexpected, I’m trying to find the right word, win for the Belize Tax Department because then it allowed them to see who are the ones that are, that are questionable what is it that they are doing with their reporting of the GST. I know some stores they closed down, they didn’t want to participate and you need to ask why. Or some of them coming with all  sort of excuse, oh it’s already in the price but yet they don’t discount it in the invoices. So what that has done is that has alerted the BTS that we need to go and visit these businesses to see how they’re managing their operations, probably do some audits to see if they are, what they’re collecting is being reported back if they’re collecting it the way…..not suggesting they’re doing anything wrong but it makes us question. So from that end, I think something positive came out from it. But most of all, our citizens were excited that they’re saying well, in effect they’re getting a 12.5% discount. Or if you want to be very mathematical and take it from the dollar, take it down from that, it’s going to be a little less than 12. point is you’re getting a huge discount on your GST and they are using that then that’s extra money that they can use to be able to have a good Christmas and we want to continue to work on that. On those hiccups I imagine that the tax department has already gone to speak to some of these persons and to ensure that they do the proper reporting or recording of their GST. We believe it’s a win-win for everyone.” 

Reporter: Are you confident that this weekend’s will roll out without a hitch? 

John Briceño, Prime Minister: “Well I hope so. I think, let’s put it this way, it’s going to be better than this first weekend. So I think it will be better.”

While the government will forgo approximately five million dollars in taxes, PM Briceno says the initiative is something he believes can be replicated next year. 

John Briceño, Prime Minister: “They are suing the government. They’re taking the government to court for an action that we think that it is within our right, our ability to do as a government. So obviously we’ll have to defend our position, so then the government will have to pay for that.”

Reporter: Which means the taxpayers will pay. 

John Briceño, Prime Minister: “Obviously. I think what you need to do is to start to speak to Mr. Feinstein, because he continues to take out lawsuits for everything. And we have a responsibility to defend. If we do not put anybody and then we lose the case, then what? One, it will set a bad precedent. Secondly, I don’t think he is within his right, but he just continues to prolong. So we have to ensure that we put the best possible minds to ensure that we do not set a precedent, that the government can make these decisions to acquire land on a national interest.”

The tax department has also implemented a hotline for shoppers to report non-compliant businesses this weekend.