Photo: Mayor Bernard Wagner
BELIZE CITY, Thurs. Oct. 3, 2024
The Belize City Council (BCC), in collaboration with the Ministry of Rural Transformation, Community Development, Labour, and Local Government, held a town hall meeting on Thursday, September 26, 2024, at the House of Culture to discuss the upcoming New Trade License Regime. The meeting aimed to inform business owners of the changes and new features that will impact trade license procedures in Belize City and in all other municipalities come January 2025.
At the head table were key participants including Mayor Bernard Wagner, Director of Local Government Mr. Clifford King, and Valuation Manager at the Belize City Council, Mr. Troy Smith, who provided insight into how the new regime will impact local businesses.
In his welcome remarks, Mayor Wagner emphasized the regime’s role in supporting both new and established businesses, noting that it is designed to create an environment conducive to business growth. He believes the new regime simplifies the trade license process, making it easier for businesses to operate and thrive in Belize City.
Both Mayor Wagner and Mr. King highlighted that the new regime aims to enhance five core principles which are predictability, accountability, transparency, revenue neutrality, and ease of administration. These principles are expected to benefit business owners by providing greater clarity.
Mr. Clifford King, Director of Local Government, delivered an in-depth presentation explaining the key features of the new regime. One of the notable changes is the establishment of trade licensing fees for a definitive three-year period. This eliminates the need for annual assessments for licensed businesses, allowing for better financial planning and investment in growth.
Another significant feature introduced is the municipal trade matrix, which specifies the cost per square footage of any trade based on the business’s economic classification and its location within designated trade zones. This matrix will be essential for calculating yearly trade license fees, providing businesses with an objective assessment.
Mr. King also introduced a new self-calculation feature for business owners, enabling them to determine their trade license fees using a standardized formula. This removes subjectivity from the assessment process and allows for greater transparency. Business owners will be able to calculate their own fees using the same formula as the valuator conducting their assessment.
A key aspect of the new regime is the introduction of the term productive footprint. With this new system, only the square footage of a business’s active operational area—where the business is conducted—will be used in calculating fees. This excludes non-productive spaces such as lobbies, restrooms, parking lots, and storage areas, which were previously included in assessments.
In order to ease the transition to the new regime, an important note shared during the town hall was that the new trade license fees are not expected to drastically impact businesses. Under the new rules, trade license fees for this upcoming year cannot exceed 10% more than what businesses currently pay, nor can they be reduced by more than 10%.
The town hall meeting concluded with a robust Q&A session, during which business owners expressed their concerns and sought clarification on various aspects of the new regime.
The Belize City Council has announced that additional information regarding the new regime will be shared with the public in the coming weeks. This will include detailed guidelines on the formula that business owners and valuators will use to calculate the new trade license fees in order to help businesses navigate the new system.