by William Ysaguirre
BELIZE CITY, Mon. Dec. 9, 2024
Belizeans who haven’t yet bought their Christmas ham and turkey will be rushing to the supermarkets this Friday and Saturday, December 14–15, to take advantage of the newly announced exemptions from paying the 12.5 percent General Sales Tax (GST) on any standard-rated goods sold as retail at any store in Belize. The exemptions will also apply over the Christmas weekend of Friday and Saturday, December 21- 22.
The government announced the GST-free days on Monday, December 9, adding that picnic shoulder hams, smoked ham legs, and imported turkeys will be zero-rated for the entire month of December. The Tax Department’s release said the initiative was aimed to give Belizeans some relief from the global inflation which has increased the cost of living.
There are exceptions, as buying a motor vehicle will not be exempt. Anyone buying fuel – gasoline, diesel, and liquid petroleum gas will still have to pay GST, as will those who buy alcoholic beverages, cigarettes, or firearms and ammunition.
For one retiree, she said it will be the first time she can afford to “spend Christmas” with ham and turkey, rather than simply “see Christmas and can’t spend it”! This is because living on a fixed income, she had to budget her pennies to buy essential food items, as rising fuel prices after the war in the Ukraine drove up the cost of many “extras”, and the post-pandemic increase in freight rates and shipping logistics made many manufactured items increasingly scarce, putting the price beyond her reach.
Another working-class shopper looks forward to stock up on many foodstuffs, not just for the holiday season, but for the new year. In addition to getting a Christmas ham for 12.5 percent less than he might otherwise have paid, he also plans to invest his end of year bonus, on many other basic necessities he would normally buy, while they are 12.5 percent cheaper than they will be next year.
Store owners are also welcoming the tax break, which they hope will encourage shoppers to come out and increase their Christmas sales. Registered retailers who use a programmable cash register or a Point of Sales (POS) system won’t need to re-program their systems as they can simply apply a 12.5 percent discount on customers’ purchases to apply the zero rate. Where the cash registers would add GST to the sale, the register will simply not add GST on sales on the GST-free days. The Tax department has also informed registered businesses that they will need to report all zero-rated sales on line 110 and provide detailed sales information for the GST-free days, when they file their GST returns for the month of December. The exemptions will not affect input tax recovery for eligible goods.
The Belize Tax Services Department advises buyers to beware of any abuse, and to check their receipts to verify that GST was not applied in error. Shoppers should report any discrepancies to the Department. There are some exceptions. Only retail sales will be GST-free; wholesale purchases will not be exempt. This exemption will not apply on items ordered, bought on credit, layaway or hire purchase or bought on consignment. Importers will still need to pay GST to Customs for imported goods. Service providers will continue to have to pay GST on taxable services.
