The government has announced that on December 14th, 15th, 21st, and 22nd, local retail purchases will be exempt from the 12.5% General Sales Tax (GST). This exemption applies to goods purchased at grocery stores, supermarkets, hardware stores, and convenience stores. However, certain items, such as alcoholic beverages, vehicles, cigarettes, and gasoline, will not be exempt from the GST. Customers are encouraged to check their receipts to ensure they are not incorrectly charged. Establishments that violate this tax exemption on the specified dates will face penalties.
A government press release highlighted that the tax break applies only to retail purchases. It does not include items ordered online, purchases with credit cards, items bought on layaway, hired purchases, or items acquired wholesale. However, picnic shoulder hams, smoked ham legs, and imported turkeys will be exempt from value-added taxation for December.
The Honorable Andre Perez, Area Representative for Belize Rural South (Ambergris Caye and Caye Caulker), stated that the government is committed to providing meaningful relief to Belizean’s during Christmas. This initiative aims to help Belizeans spend less while supporting the local economy.
Perez emphasized, “Please check that you are not being charged GST.” He also warned shopkeepers, stating, “Do not raise or normalize prices. This program is meant to benefit all Belizeans and consumers, and it has nothing to do with politics.”
This is the first time the government is offering a tax break, and according to Perez, the goal is to understand how much money remains with consumers and to assess whether businesses experience an increase in sales as a result of this new initiative.
The Director General of Belize Tax Services, Michelle Longsworth, stated that December is a month when people tend to spend more due to the Christmas season. She explained the rationale behind the decision to offer a tax break to Belizeans during this time. “Based on our data analytics and economic trends, we were able to properly advise to say this is an initiative that the government can undertake to bring government and people closer,” she said. Longsworth said that businesses using a Point of Sale or POS will not need to reprogram their systems. “They will just offer the 12.5% as a discount line,” Longsworth noted.
Area Representatives Perez and Longsworth believe that this program can be successful with the cooperation of the business community. Consumers are once again encouraged to always request a receipt after making purchases. Any complaints can be reported to the Belize Tax Services branch in San Pedro by calling 226-3071.
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