?First Government has to walk the walk. It has to show a genuine commitment to reform,? George Frazer, NTUCB?s general secretary, told Amandala today.

Recently, it was reported that the Government of Belize is being advised by the International Monetary Fund (IMF) to raise taxes. Less than a year ago, GOB upped sales and land taxes; however, it is anticipating that it would still be unable to finance its current budget, despite the increases.

The Prime Minister, Hon. Said Musa, had said in recent weeks that Government would have to raise millions to bridge the budget deficit; but he said that GOB had not decided on any specific tax measures, and would probably do so in January of 2005.

?It is our sincere view that there is no need to increase taxes,? said the BBB in a press release issued on Tuesday, November 16.

Cardo Martinez, BBB president, whom we also spoke with today, said that before Government asks for more taxes from workers and business people, it needs to ?show good faith and good governance.?

Martinez said that the Bureau is opposed to the tax measures because there are several areas that Government needs to address. He underscored a point made in the BBB?s November 16, 2004, press release that, ??GOB must effectively enhance its best effort for the collection of revenue: e.g.: income tax, land tax, the avoidance of leakages, particularly at points of entry to Belize??

The NTUCB and the BCCI, in their press statement signed by Frazer and BCCI?s president, Arturo Vasquez, are calling on the Government to put in place a 10-point reform agenda, built around the recommendations of the Political Reform Commission, which presented its final report to Government in January, 2000. The recommendations address issues such as public spending, debt, government contracts, and the waiver of fees.

The NTUCB and the BCCI are also calling on the Government to undertake a ?complete financial audit? of the DFC.

The BBB also thinks, ?GOB should be seen to be collecting monies outstanding immediately to the DFC prior to having DFC return to its developmental function.?

The BBB urged the Government to curb excess spending.

?We?ve been telling them for years of this lot [excess] of wastage and abuse,? said Frazer. He pointed to instances where certain high-ranking Government officials are given expensive, new vehicles that are ?not the most economical in terms of fuel.?

He added that the NTUCB?s investigations have revealed that GOB is due over $8 million in income tax arrears, uncollected since 1990.

Currently, Frazer informed, just over 6,000 workers, who earn more than $20,000, pay income taxes, while the full-time workforce is nearly 50,000.

While the IMF has recommended a three-percentage point increase in sales tax, it has also recommended a lowering of the ceiling for income tax payments from $20,000 to $15,000.

?We are looking at other areas where they can save?the contract officers,? Frazer told Amandala.

Martinez told Amandala that the BBB is requesting more hard data from the Government, as the current economic situation needs to be looked at very carefully.

He said that the BBB is expecting to meet with the Government technical financial team and Cabinet?s public finance committee next week.