7 News Belize

House Meets Friday to Reduce Tax on Casinos
posted (June 16, 2009)

There’s a meeting of the House of Representatives on Friday to pass two major pieces of legislation: first to reduce the business tax on Casinos from 15% to 8% and the second to introduce a bill for the seventh amendment to the constitution which will primarily make way for the Caribbean Court of Justice to replace the Privy Council.

While the tax rate reduction is controversial considering the devastating social impact that Casinos have had on Belize – according to a senior staffer in the Prime Minister’s Office, while the tax rate is set in law 15% - from September first, 2006 the Casinos have been paying only 4% tax - the product of a special tax waiver given by the last government – but never passed it into law – likely because it would have been politically unpopular. So then, the real effect of this change is that while halving the rate set in law, they are doubling the actual rate of tax that Casinos must pay.

And while opinion on that one may still be split along political lines, what is likely to inspire controversy across the board are two amendments tucked bundled into the Seventh Amendment to the Constitution Bill.

The first will allow holders of dual nationality to qualify for a seat in the National Assembly. Presently, those with dual citizenship are disqualified. In Jamaica recently - two elected representatives for the ruling JLP were disqualified from holding seats in parliament because they had dual citizenship.

The second amendment is more controversial as it would allow an unelected attorney to become Attorney General without being a member of the House or Senate. As it stands presently, the constitution provides that the Attorney General is a ministerial post and only members of the House of Representatives or the Senate can become a Minister. Under this new construction, the Attorney General would still be a Minister – with a special proviso added to the constitution to permit that status to a qualified legal officer who is neither a member of the house or senate.

And while no one is presently earmarked for the job, the government’s rationale seems to be that in the event that present AG Wilfred Elrington is too heavily tasked to maintain his duties as AG – there’s no other lawyer in the House or Senate so it would be simpler to bring in a legal officer from the outside.

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