Many Belizeans are of the thinking that there is much more that should go to the public purse from the country’s oil, and the Government of Belize has indicated that it plans to levy a windfall tax on petroleum profits, to increase the Government’s take from oil revenues. But talks have still not concluded, and Prime Minister Dean Barrow predicts industry stakeholders will not be happy with the new tax.
Barrow told the media today that the Government and Belize Natural Energy (BNE) have had two meetings to date, and final discussions with BNE and other industry stakeholders are slated for Friday, June 13, in Belmopan.
“After that, the Government will move to implement its decision,” said Barrow. “I can’t say what will be agreed, because I am sure that there will not be agreement, but this is due process and at the end, Government will implement its decision with respect to the windfall tax.
“When we have finalized what that windfall tax will be, that will give us a clearer sense of what the revenue envelope [for the Government] will be.”
Barrow has said that his Government intends to use the revenues from taxes to temper the shocks on financially challenged consumers caused by rising food and fuel prices, as well as to compensate for the loss of revenue Government has had to suffer in absorbing some of the increases in fuel prices, and future losses it will suffer when it removes the General Sales Tax (GST) from more basic commodities, as well as from medical bills and medicines.