Minister Coye Warns Tax Collection Must Improve to Fund Salary Increases

Minister of State for Finance, Christopher Coye, says improved tax collection is a necessity in order to meet the salary increases due next month.  The minister’s remarks come in response to the transition of the Belize Tax Services Department (BTSD) into a statutory body.  He noted that currently, the government is facing the challenge of finding an additional $100 million annually to cover the cost of salary increases for teachers and public officers. 

On October 1, public officers and teachers will receive a 4.5% salary increase, the first part of a phased plan agreed upon with the Joint Union Negotiating Team (JUNT). The agreement also includes another 4% increase next year and the restoration of frozen increments, in addition to regular scheduled increments. While the government can absorb the initial 4.5% increase, Coye stated that managing subsequent increases will be more difficult.