Last Friday, we told you about the special policy programs that the Briceno Administration launched to support micro, small and medium enterprises. They are called the MSME Roadshow and the MSME Policy and Strategy.
Both initiatives seek to provide owners of small businesses countrywide with capacity building and support from government agencies that specifically focus on investment promotion and development.
There were early talks about incentives for MSME owners that could be part of these initiatives. Tonight, the Belize Business Bureau is publicly congratulating the government for what it says is "transformative policies."
There more than a hint of pro-PUP sentiment in the press release which waxes rhapsodic about the initiatives, saying, quote, "...any small business can get up to one million dollars of duty exemption, all in one year or over the period of four years… What this policy does, is spurs investment, lower risks, and improve profitability for the small business owner, who can hire more people to expand the business.… The one-two punch being considered is no taxes and no GSTS for four years for the small business." End quote.
Those proposed tax exemptions have also drawn some attention within the public sector. 7News has received reports which suggest that, at this time, there has not been any administrative or legislative framework discussed or approved for these tax exemptions. There is also the concern about which agency would administer something so broad, and how crafty business owners may attempt to exploit the legitimate offer being made.
This afternoon, we got a chance to speak with Arturo Lizarraga, the President of the Belize Business Bureau. Here's how we challenged him to defend the high praise to the Briceno Government that these policies are "transformative":
Arturo Lizarraga - President, Belize Business Bureau
"It's transformative because we've been in a downturn, we've been in a shock and a state of shock for many years. It's not two years of COVID. It's almost like 15 small businesses paid a terrific price under the last administration. They suffered greatly. The focus was on the nationalization of two big companies: BTL and BEL, and nothing about the small business. And all this while people were losing their homes, losing their business, they're suffering."
"So the fact that this administration not only moves from tightening on the fiscal space, then goes in and says, listen, you've been through COVID. You've been through this terrible dry desert spell of 10-15 years. Let's give you a break. And what more can you do than incentivize people to spend and invest? If you tell them, look, I'll give you $1,000,000 duty-free, they will go, and now, they can afford that pick up. You can afford that dumb truck. They can afford that equipment that they could not afford because of taxes."
"Now, Most businesses struggle for the first three years. They really do. And most fail within the first three years. But if you can give them - and one of the reasons they feel is because even before they start making money, they have to pay the government."
"Remember, as we speak, this is being considered. It's not official yet. I believe that they've been discussing it publicly. They've been discussing it. But we're very supportive of that direction. And we want it to be the four years incubation because that is necessary."
Daniel Ortiz
"We've heard concerns already early, though, that these are simply promises [coming] from an elected politician. They haven't taken form in actual legislative reform."
Arturo Lizarraga - President, Belize Business Bureau
"Look, we've seen them do legislation overnight. If they're interested, they can do it. I'm in conversation with people from BELTRAIDE. And I understand in two weeks, we should be able to go for that concession. We should go and see if we need equipment; we should be able to file. And I'm hopeful that it's not a big fee. Maybe it's a 100-bucks fee, and we get results in one week."
"I understand, and [during] conversations last night with the PM, he's saying that that consideration has been processed, and they will try to get to a full understanding. Exactly how long it will be and when it will be. But I do know that this is not just hearsay, or this is not just speculation. This is a serious consideration that will be given attention. And so I do not expect that to be delayed more than a month."
The Belize Business Bureau also commented on the proposal by the government for small businesses to get 20% of all government procurement tenders for goods and services by March 2025. They think that the percentage should gradually be increased up to 50%.
