BELIZE CITY, Thurs. Aug. 24, 2023
The Belize Chamber of Commerce and Industry (BCCI) and the Belize Chinese Association (BCA) have come together over an issue of mutual concern: price control regulations which the Chamber says were enacted without adequate consultation. Representatives of the two organizations held a meeting on Wednesday, August 23, after learning of Statutory Instrument 87 and 88 of 2023. The first, Supplies Control (Prices) (Amendment) (No. 26) Regulations, 2023 sets out additional details for the ticketing regime targeting stores that engage in price gouging. The latter, Supplies Control (Prices) (Amendment) (No. 27) Regulations, 2023 sets out the maximum mark-up allowed on certain basic items (between 15 and 25%) and adds additional items to the price control list. A total of 42 items are now included in the regulations. Previously, only 9 items were on the list. Both statutory instruments were signed by the minister responsible for supplies control, Hon. Jose Abelardo Mai on August 10, 2023. They were gazetted the following day.
We are told that such coming together of the two entities only happened once before, on the matter of crime. In a joint statement released today, the BCCI and BCA state, “Both organizations express surprise at the sudden announcement of the S.I. and agree that more time is needed to allow all parties to properly understand the requirements of the information in S.I. 87 and 88 of 2023 and relay it to the necessary parties that will be affected.” They also request that there be a short delay in the implementation of the S.I.s to ensure that they properly understand the requirements and share the information with their membership. They add, “Both organizations also understand the importance of the government’s role in tackling economic complexities, and hope to be involved in the process.”
In an interview today, Chamber president, Marcelo Blake confirmed to Amandala that they have only had one meeting with the Supplies Controller and the CEO from the Ministry of Human Development that is also engaged in the process of addressing price gouging. After that meeting, he says the Chamber wrote the Prime Minister and shared a review of contemporary research which they say indicates that price controls don’t work. Blake says no other meeting occurred after that, and affirmed that it was not for lack of trying. Blake says that while they await a response from the government about a delay of the enforcement of the S.I.s, they have duly notified their membership that the regulations are in effect.
Blake insisted that there are other ways the Government can address the high cost of goods, including making available social programs like the grocery bag initiative for those most in need. As to drawing revenue lost from price controlled good from other products, Blake said “The challenge you have is that it’s competition … you have to be careful that you are not pricing yourself out of the market.” Responding to a report that grocery stores mark up their goods up to 60% or more, Blake said, “There is a picture being painted that, in fact, businesses are taking advantage, when that is not the case. At the end of the day, your cost of acquiring a product is dependent on who you’re purchasing it from, meaning overseas. We are heavily an import country, so whoever we’re buying it from, the supplier, the manufacturer, has a price that is set. And then you have to add on your freight, your insurance, you land it here in Belize, and then you have the duties. And that’s part of a conversation that has not been had – we’ve not had the opportunity to have it with the Government. Looking at tax reform – meaningful tax reform. Because at the end of the day, that is one way that the Government can partner to contribute in reducing the price of goods.” He said GST is 12.5% alone, and added to that is Business Tax of 3%, but the cap has to be 15% for the retailer placing the item on the shelf. He indicated that this is apart from duties.
Blake also expressed concerns regarding the idea being explored by Government of establishing government-owned cooperative stores with basic items to assist those most in need. Blake said, “Hats off to the Government for actually looking into setting up these cooperative stores – as they label them – to be able to assist the most vulnerable members.” However, he questioned how exactly that would work because “obviously, you’re then setting up stores who would then be competing with any and all retail stores as well – depending on the mechanism that’s utilized to get those up and running.”
Asked to respond to the concerns of the Chamber and BCA, Minister Mai today informed that they received the printed tickets on Wednesday. However, they have decided to first do a walk-through at the majority of Asian grocery stores along with the owners “and show them what is a ticketable offence and what is not, so that they don’t say ‘oh! Government di chance wi and we neva know.’ So we are in constant dialogue with them. We are in consultation with them, and every step of the way we inform them of what we are doing.” He shared examples of offences, including not having a display at the store of the prices for price-controlled goods or not having prices on products.
The new regulations indicate that a violator shall pay a fine of up to $300 within fifteen calendar days of the issuance of a ticket. Eventually, the ticket becomes a summons.
Cabinet, in its release today, informed that the price control measures Government is introducing are temporary, with the intention being to “bring relief to the most disadvantaged members in our country who have been bearing a disproportionate burden caused by the dramatic increases in the cost of basic products. This policy measure has become necessary because of widespread price gouging. Despite the reduction in costs of goods internationally, there has been very little price reduction on many imported goods. Cabinet has noted that this applies to goods imported recently, after a reduction in acquisition costs.”