GOB Expands GST Exemption on Residential Electricity Bills

The Government of Belize (GOB) has expanded the General Sales Tax (GST) exemption on residential electricity bills, raising the monthly threshold from $100 to $200. The measure is intended to provide relief to Belizeans facing higher electricity costs.
Prime Minister Honorable John Briceño said on September 2nd that the government is aware of the difficulties many Belizeans are experiencing because of rising electricity bills. “This is going to be positively affecting our consumers,” he said. “We understand, and we are doing the best we can with the little that we have.”
The expanded exemption took effect on September 1st. Residential customers whose monthly electricity bills do not exceed $200 will no longer be charged the usual 12.5% GST.
According to an official Cabinet brief, the measure is expected to provide direct relief to more than 91,000 customers, representing approximately 96% of all residential customers. The previous $100 exemption threshold has been in place since April 1, 2017, when the former United Democratic Party administration lowered it.
In San Pedro Town, Ambergris Caye, as in other parts of the country, several customers have reported significant increases in their electricity bills despite claiming that their consumption habits have not changed.
“My light bill increased by $200, and I do not believe I increased my consumption,” one customer said. Others have questioned whether meter readings used to calculate their bills may be contributing to the increases.
Some island residents are also exploring solar energy as an alternative. However, they have described the application and approval process for connecting solar systems to the national grid as lengthy, with some reporting limited communication about their application status.
Belize Electricity Limited (BEL) has said that higher bills may result from increased electricity consumption during periods of extreme heat. Hot weather forces appliances such as refrigerators and air-conditioning units to work harder and use more electricity.
Belize also faces challenges meeting its growing energy demand. The country relies heavily on electricity imported from Mexico’s Comisión Federal de Electricidad (CFE), along with power generated by local producers. Limitations in imported supply have put pressure on the national grid and, on several occasions, prompted BEL to implement planned power interruptions to stabilize the system.
To address the situation, Cabinet approved an Emergency Declaration allowing BEL to begin procuring additional generation capacity ahead of a projected supply shortfall in 2027. According to the government, the measure is intended to ensure that Belize can meet increasing electricity demand and maintain a reliable national supply.
Cabinet also supports expanding eligibility for BEL’s Social Rate by increasing the monthly consumption limit from 60 kilowatt-hours to 80 kilowatt-hours. The proposed change is expected to extend the preferential tariff to approximately 17,000 residential customers.
Together, the measures are intended to provide immediate financial relief to households while strengthening the country’s electricity supply for the future.