On Friday, foreign land speculators were on the minds of legislators at the House meeting. That's where the government brought a Stamp Duties Amendment bill for second reading. It's a measure where government is increasing stamp duties on those land transactions conducted by foreigners. The Leader of the Opposition - himself a former Minister of Natural Resources - said that it's not a good idea - and the PM agreed that it's far from perfect:...
Hon. John Briceno, Leader of the Opposition
"Raising taxes on foreigners is good politics, but in this case I don't think it is really a wise move. Once you start to target foreigners and this usually have a negative effect on the business climate in Belize, because it also start to create a level of uncertainty in the country and in many instances drives away investors."
Rt. Hon. Dean Barrow, Prime Minister
"We've been seeing Madam Speaker and Mr. Leader, too many situations in which Belizean land is being transferred from foreigner to foreigner and when we checked, in very many cases the land has not been developed. So it underlines the fact that there is a degree of speculation taking place that's rampant. When that happens, of course the Belizean economy is cut out to an extent that is alarming. What I mean by that, foreigner transferring to foreigner, it is Belizean land being transferred, but basically all the money business is done offshore. The only thing we get from that transaction is the stamp duty."
Hon. John Briceno, Leader of the Opposition
"I think what is even of greater concern to everyone is the issue of the evaluation of land. It takes very long first of all to get your land valued."
Hon. Florencio Marin
"If we are raising the revenue, I believe there has to be some commitment by this government that this process must move much faster, at the very least the transfer of title from name to name. Just yesterday when I went to the bank, the manager told me that there is a bank loan that cannot be issued, because from the month of January they are waiting for a title transfer to come through."
Rt. Hon. Dean Barrow, Prime Minister
"Now, the honorable members or the Leader of the Opposition's point about valuation and my friend, the member for Corozal South East chimed in this respect. Those points are well taken. Leaving aside for a moment the question in the increase of stamp duty for foreigners, generally, we all concede that the valuation process in the lands department is too slow. There was a huge discussion on Tuesday in Cabinet. Those on our side are also complaining and for the Leader of the Opposition, you are especially right. It frustrated small and big."
"These are issues that we must take onboard. As I said we concede freely right from the start that there is a situation that needs fixing in this regard."
"You're right. If we are going to be increasing the transfer tax, even though it is only for foreigners, it is only fair that we do something about the system."
Hon. John Briceno, Leader of the Opposition
"The other very important point when it comes to valuation of land, that it is very subjective and arbitrary."
Rt. Hon. Dean Barrow, Prime Minister
"The Leader of the Opposition is perfectly correct. There is too much scope in all this for corruption. Corruption on the part of the parties transaction who misrepresent, under represent the value of the transaction so they can pay less and the possibility of corruption on the part of the valuers who say you're wrong, the valuation is going to be doubled - leading to the chance that parties to the transaction will say well alright lets compromise, I say $500,000 you say Mr. Valuer, a million, do it for so much for government and you will get so much privately."
"There is no question at all, but that this happens."
Hon. John Briceno, Leader of the Opposition
"There is also no appeal system. If you do not agree with the value that they have given to you the land owner or the land purchaser, they have nobody they can appeal to."
Rt. Hon. Dean Barrow, Prime Minister
"Also Mr. Leader of Opposition, you are right in terms of saying that as it now stands it is absolutely unfair for there not to be any prospect of an appeal, any opportunity of an appeal by the parties to the land transaction. There is already provision in the law for the appointment of commissioners of stamps who will do precisely the function that you've in fact urge upon us, act as a kind of appeal tribunal."
"You might argue well that person who will act as a kind of one person appeal tribunal may himself or herself be reached. But you can't - I mean there is a point beyond which you can't...."
Hon. John Briceno, Leader of the Opposition
"I know that by making these amendments, the government believes that they can collect more taxes and they may be so in the short term, but in the medium term I think we are going to be losing even more monies than what we think this added 3% would bring."
Rt. Hon. Dean Barrow, Prime Minister
"While we will have to see how it goes in terms of the 3% on foreigners, I hope that my rationale, my description of the rationale for us deciding to do this in term of what we've been seeing will make you more sympathetic to this effort."
