Fuel Prices in Belize Surpass Thirteen Dollars per Gallon as Tax Debate Intensifies

Fuel prices in Belize have now surpassed the thirteen-dollar mark per gallon, prompting renewed public discussion about the level of taxes applied to petroleum products. While some consumers are calling for a reduction in those taxes, John Briceño says the current structure plays a critical role in maintaining government revenue and avoiding additional taxation in other areas.  Speaking during an appearance on The Morning Show on Love FM and Love Television, the Prime Minister acknowledged the strain higher fuel prices place on households. However, he explained that the taxes collected on fuel form an important source of government income that helps fund national obligations, including the recently approved salary increase for public officers.

John Briceño, Prime Minister of Belize: “I know it’s in everybody’s mind. We want to bring it down to, I said, you know, to $9 when we were in opposition and I still want to keep that promise to keep it there. But for us to be able to do that, the other areas of tax collection have to come up. Because if we reduce that then we’re giving up millions of dollars. And if we give that up, where are we going to get it back? People still want that you can go fix their roads. People still want to make sure that they can go to the hospital and there are doctors and nurses and to get a lot of the medication. People still want to be able to schools are operating. People still want their sugar roads and their agricultural roads open and fixed and it has to come from somewhere. And so these are the taxes and fuel has been one of the easiest tax to collect because it comes into these huge boats, you know, the ships and so we know that they’re bringing a million gallons so we know more to collect immediately. There’s no one to hanky pinky there, we collect the monies. So we have to find the balance. Presently we agreed not to reduce the tax because we want to first see how this thing will settle with the prices of fuel. Obviously if it continues to go up then we will have to bring down the tax to be able to ease the pressure on people because fuel is the engine of the economy. So you need it for your production, you need it for transportation, you need it for everything, need for electricity.”

The Prime Minister also addressed concerns surrounding customs duties on imported vehicles, particularly at the Santa Elena Border, where he acknowledged that inefficiencies in the system have sometimes led to irregular practices.  Briceño said the government has streamlined the process and standardize duties in order to reduce opportunities for illegal activity while ensuring the state collects the revenue it is owed.