Tax Service clears up ‘misconceptions’ surrounding GST-free weekend

Published by BBNTEAM at December 16, 2024

Posted: Monday, December 16, 2024. 9:59 pm CST.

By Aaron Humes: Director General of the Belize Tax Service Department Michelle Longsworth has told KREM News that contrary to some reports, this weekend’s GST-free weekend was not a “nightmare” as some believe.

That does not mean there were no hiccups to be dealt with. Some consumers expected not to be taxed on zero-rated goods, that is, do not attract GST. Some businesses tried to cheat consumers out of GST by listing prices as not inclusive of GST which is against the law – all prices on store shelves must include GST, which would be subtracted at the cashier. Others took down their GST certificates which is also unlawful. There was also confusion over the taking of debit or credit cards – Longsworth clarified that “goods on credit” refers to “giving somebody a good or product and they pay a few days later or 30 days later, it does not mean using or paying by means of a card. Most people use cards these days – nobody carries big or large amounts of cash anymore, so people pay with their credit card or debit card.”

Longsworth noted that businesses that make more than $75,000 in sales must be registered to charge GST, but some businesses that don’t clear that figure do not qualify.

GST officers handled every complaint made, according to Longsworth, and officers were on the hotlines and on the ground. The Department now has a list of businesses reported on and the issues identified and are out this week further advising businesses on how to proceed. There will also be public service announcements ahead of the second GST-free weekend on December 20 and 21.

Longsworth further noted that consumers are learning valuable lessons about checking their receipts to see if their prices are correct.

As for when the final results will be known, Longsworth reported, “Sales made this month, in December, businesses will not file until January 15. So, it is at that time when they submit their returns, their GST returns for December, in January, we’ll be able to look at how the GST collections decreased and how the business tax revenue increased because, remember, there’s an increase in spending because more people went out to buy. And so you have to look at [the fact that] we projected earlier that based on our calculation in a given December weekend, we would project on those two days $2.5 million [dollars] in collections in revenue for GST.”

Any violations or concerns can be reported directly to the BTSD via the following contact numbers: 613-2773, 613-8375, 614-5731, or 613-2840.

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