PSU Calls for Suspension of Tax Services Transition Over Legal Concerns

The Public Service Union (PSU) of Belize is recommending that the government suspends the transition of the Belize Tax Services to a statutory body.  The union issued an urgent position paper to the Cabinet, indicating that the proposed reform is legally flawed, lacks proper consultation, and is not supported by empirical evidence.  The PSU says it is not opposed to the modernization of revenue collection in principle. However, it contends that the government’s current plan violates the Belize Constitution and Public Services Regulations. The paper notes that by unilaterally forcing officers to re-interview for their positions, which the union calls a form of “constructive dismissal”, the Ministry of Finance and the management of the for usurping the exclusive authority of the Public Services Commission (PSC). The PSU also claims that the government has failed to engage in “genuine consultation” with the union required by law.  PSU President Dean Flowers says that the department recently received a $28 million investment, and that government needs to show proof that the change was effective before spending millions on a new structure. 

Dean Flowers, President, PSU: “It must be stated, and the Belizean people must be reminded that we had a very difficult time with the Government of Belize and this includes the Barrow administration prior to the 2020 election in addressing the amalgamation of the income tax and sales tax department because the government of Belize always seems to think that there is no need for meaningful consultation and inclusion of the employees of these departments that they wish to transition into statutory bodies. It has always been a misguided and a very disrespectful process as far back as I can think of where these types of proposed transitions are concerned and for the government to have the audacity to state that they have been working or putting the wheels in motion since 2022 and neither the Director General nor the Financial Secretary nor the Cabinet saw it fit to reach out to the employees and to inform them and brief them about this. And let’s be clear here , it’s interesting that they would have been contemplating this and working on this since 2022 when in 2022 the entire amalgamation was very disjointed in even as we speak and as our paper speaks we’re saying give us a report on the amalgamation before you move to transition.”

To move forward, the PSU made several recommendations on actions government should take to ensure that any move to restructure tax collection is done properly and to the benefit of Belizeans. This includes a comprehensive audit of the BTSD post amalgamation.

Dean Flowers, President, PSU: “It is important that we halt the transition process and that we suspend all actions towards SARA implementation until a resolution is reached or until the Belizean people, the Public Service Union and the workers that we represent can get a clearer picture and a clearer understanding of why we’re going where they’re proposing that we go and how exactly we’ll get there in the smoothest of fashions to not disrupt public services or disrupt the livelihood of the officers in there. We expended great effort to suggest to the government that it is important that they assess this department and assess the success or failures, challenges of the department, the staff, the management team and more importantly the impact that the amalgamation has had on the tax revenues of this country through independent reviews, through independent performance audits which will ultimately produce a detailed assessment of the amalgamated BTSD.”

Turning to the impact the transition would have on the staff of the BTSD, the PSU is calling for the Public Services Commission to be included in all decisions affecting staff and that the PSC commission an independent performance audit of the BTSD within 60 to 90 days. The union says it wants assurances that the officers’ rights, including their tenure, seniority, and pension benefits, will be protected. The PSU’s paper concludes by urging the Cabinet to choose a “prudent, lawful, and inclusive reform” that is grounded in evidence and respects the rights of public officers./