Posted: Wednesday, August 6, 2025. 11:09 pm CST.
By Aaron Humes: The Government of Belize (GOB) has taken a firm stance against recent public statements and media reports that it claims are misleading regarding the transition of the Belize Tax Service Department (BTSD) to a Semi-Autonomous Revenue Authority (SARA).
A statement issued today said, “The Government categorically rejects any claims that the transition to SARA will result in job losses. Every current employee of the BTSD will be guaranteed continued employment. All staff will be given the opportunity to transition into SARA under improved terms and conditions of service, including competitive compensation packages, modernized human resource policies, and greater opportunities for training, promotion, and professional development.”
In response to accusations of mismanagement within the BTSD, the GOB highlighted its successful track record in tax collection, stating that the department has consistently met and surpassed targets set by the Ministry of Finance. This performance has earned the BTSD recognition as a leading tax administration both nationally and internationally. Notably, the department has participated in over 250 training programs, reflecting its commitment to professional development and improved service delivery.
The transition to SARA was officially approved by Cabinet in October 2022 as part of a broader modernization strategy for tax administration, which was reaffirmed during the Prime Minister’s recent 2025/2026 Budget Speech. The Government asserts that this reform is integral to enhancing tax services and supporting long-term economic growth in Belize.
Technical support for the transition is being provided by the Caribbean Regional Technical Assistance Centre (CARTAC), which previously aided in the successful merger of the former Income Tax and General Sales Tax Departments into the BTSD. The GOB clarified that this merger occurred prior to the securing of financial backing from the Inter-American Development Bank (IDB), signaling that modernization efforts were already in motion.
Government emphasized that key outcomes of these efforts have been validated by two independent evaluations of the Inter-American Development Bank’s (IDB)-supported Strengthening of Tax Administration project, which demonstrated improvements in Belize’s tax landscape including: “…an increase in the tax-to-GDP ratio from 12.8% in 2019 to 15.6% in 2024, without any increase in the rates of business tax or general sales tax; the successful rollout of the Revenue Management System (RMS) and the IRIS Belize Portal, enabling e-filing, e-payments, and other digital services; strengthened institutional governance and the implementation of risk-based compliance models; extensive staff training and modernization of internal controls; and alignment of reforms with national priorities under Plan Belize and long-term fiscal sustainability objectives.”
The Public Service Union (PSU) is developing a White Paper in response to the plans for transition of the authority, questioning whether the Government will be able to afford a planned increase in employment to 400 and what will happen to current employees it represents.
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