The business Tax on Casino’s –Government is reducing it
from 15% to 8% at the House sitting on Friday. Just the idea of reducing the
tax on Casinos has provoked widespread outcry and to cut it in half –
well that’s even worse. But government says while it is halving the nominal
rate, in fact, it’s doubling the rate that they were actually paying.
That’s because in 2006 Government informed that casinos that even though
it had legislated a rate of 15% - it would be reducing it by the authority not
of parliament, but of letters from the Ministries of Finance and Investments.
One letter sent from then National Development Minister Mark Espat
in September of 2006 informs the owner of Princess Entertainment that the 4%
rate will be guaranteed in his 5 year license issued on October 15 of 2006.
So that’s the effective rate – but still many people feel that lowering
the nominal rate is sending a very wrong message. Prime Minister Dean Barrow
weighed in today.
Hon. Dean Barrow, Prime Minister
“We have to remember that these people employ a fairly large work
force. Forget the moral issue of whether you think casinos are a good thing.
We have to be concerned about investment. We have to be concerned that when
these people first were given a casino license, the rate of business tax by
law was 0.75% so that when it went to 15%, that was in 2005 and then after they
screamed bloody murder the government as I said, the then government offered
to change it though not by law.
We took everything into consideration, we decided that we first thought
of six percent, we had a full fledge discussion on it yesterday. We had a caucus,
not just a Cabinet, all our legislators were present, and we thought that 8%
represented a fair compromise where we would be charging more than what they
are actually paying but we would not be charging so much more that we would
endangering the work force.”
Jacqueline Godwin,
What happened to the businessman or woman is home sitting saying well what about
the taxes we pay, why shouldn’t our taxes as well be lowered and Belizeans
on a whole?
Hon. Dean Barrow,
“No, no. That is understandable except that the taxes for the casinos
are being lowered, they are being increased. The nominal rate that is on the
law books is being taken down but I am saying effectively they weren’t
paying that for three years. They have been paying at 4% for the last three
years and we are doubling that four percent to eight percent. So the regular
Belizean will not feel that we are favoring these people, that we are giving
them a particular break while other taxpayers that are perhaps groaning under
the weight of the tax burden are not being assisted. Once you accept that whether 
it was proper or not, the real rate that these people were charged, the real
weight they were paying was 4% then you have to accept that what we are doing
is doubling that real rate.”
At a PUP press conference today speaking about crime and the economic
downturn, Opposition Leader John Briceno said regardless of what happened under
his government, wrong is wrong.
John Briceno, PUP Leader
“I think what is important to point out is that if it was wrong then
it is wrong now and the Barrow administration knew that it was 15% and they
should have been collecting 15%. And to compound matters, if the Barrow administration
is refusing to bring down the tax on fuel, how can he justify bringing down
the cost on taxes on casinos and basically gambling.”
Jules Vasquez,
If you’re saying the Barrow administration should enforce the 15% are
you then holding his government to a higher standard than the government of
which you were the Deputy Prime Minister which was charging 4%?
John Briceno,
“No what I am saying is that if it was wrong then it is wrong now
and if it should have been collected then it should be collected now. But to
come at this time when Belizeans are going through a very difficult time, when
the Prime Minister is admitting that revenues are drying up for the government
of Belize, not to come at this time to justify bringing the tax where it by
law was 15% to 8% is simply wrong especially when he had already promised the
Belizean people in the budget debate, when he was introducing the one dollar
tax on fuel that if it were to go beyond $7 he was prepared to revisit it to
reduce it and then when it passed $7 he said well now when it reached at $8.
When now it is almost at $9 and he is still saying he didn’t make any
promises. I think it is simply outrageous on the part of the government to discuss
reducing the taxes on casinos and gambling which create a lot of problems, especially
here in Belize City.”
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