And to get the other side of the story, we took a trip to Belmopan today to hear from the Mayor who candidly spoke about the trade license fee increase. The mayor explained that when the new Trade Board took over, they wanted to ensure that the fees were corrected and that review led to the realization that many businesses were not adhering to the proper fees. Here's what the Mayor said about the adjustments:
Pablo Cawich, Mayor of Belmopan
"When this Trade Board, our Trade board took over, we did, revision of the trade rule in, in its entirety. We revised every single business to ensure that correct calculations were applied and fees were correct. Doing this exercise, we found the trade board found a lot of cases where files were blank, empty folders for businesses. Let's just use an example of $150 as a fee. We had cases where businesses were paying something similar to that amount because nothing existed to prove the trade fee, reassessments were ordered by the Trade Board, So assessments were, reassessments were carried out to ensure proper calculations for every business. So during this approach, a lot of businesses disagreed with the calculation which ended up or the fee That was the result. We, in cases where businesses approached us to discuss the issue, explained to them in detail what had transpired and we did an application of both the existing law, which is the old law, the old trade law and d we also applied the calculations using the new trade license regime that has not taken effect as yet."
But the Mayor explained that due to the new trade license regime not being implemented, what was billed will be taken as credit on their accounts.
Pablo Cawich, Mayor of Belmopan
"So what everyone has gotten so far is the new rate that was calculated. Based on the reassessment. Now, after those letters went out, I was contacted by, central government and the Ministry of Local Government, and we I was, I was, guided to ensure that no business passes the 10% limit or the 10% ceiling or floor that is mandated in the new law. Now because we are not applying or implementing the new law, the Trade Board was of the belief that we didn't have to adhere to the 10% fee. So this is where the disconnect happened."
Reporter:
"So some of those business owners will be getting new letters?"
Pablo Cawich, Mayor of Belmopan
"Yes. Yes. Every business will be getting a new letter. Even if you were, you were not affected."
Jaleeza Roberts -
"And so trade license was due at the beginning of this year, so what will that be used as? Will it be a credit or will you return the money to the businesses?"
Pablo Cawich, Mayor of Belmopan
"The plan is to use it as a credit to next year's, next year's fees, or if they would want to apply it to some other type of fee. That is also a possibility."
But what does this mean for small businesses? They are already struggling to keep up with the rising cost of goods and utilities, and the trade license fee increase is making it more difficult too. When asked, the mayor said that they are advising businesses on how to cut costs elsewhere:
Jaleeza Roberts -
"So one of the criticisms coming out of this is that the Belize, the Belmopan city council sorry, is not necessarily catering to these small businesses that already make a small level of profit. What would be your comment in response to that?"
Pablo Cawich, Mayor of Belmopan
"My comment to that would be our response to that would be that it's completely dependent on the type of business. What we've advised many business owners to do is to restructure their layout when possible, cause obviously that's not possible for everybody. But in a majority of cases, the business can make adjustments to make it smaller have always tried to work with the small business people, also with the large business people, because every business is important. So in cases where, for example, like like where, where people go to the media to express dissatisfaction, it's very likely that they have never approached the council to try and understand what has been happening or why they are getting that bill."
Jaleeza Roberts -
"But in a case like this, it's like you're putting the discrepancy or the error that was on your part on the the owner, the business owner. And so do you see where the imbalance would be there? Because it's like, yes, it was incorrect, all these years, You were paying it incorrectly. But now it's like you're punishing a business basically."
Pablo Cawich, Mayor of Belmopan
"I understand your explanation, but if you look at what is being put into effect, no, as I explained, no business will suffer, will see greater than a 10% increase or decrease in fees. Because we also have the reality that businesses, some businesses got a lower rate as well. And one of the things that we tried to ensure is that we added business owners as part of this trade trade board so that we can get a better perspective when it comes to businesses."
Businesses are expected to receive corrected bills soon, but with a price being guided by the trade board, anything stands.
