Editorial

Editorial

If Belize is looking to create new start-up businesses from among native Belizeans it would be wise to amend the General Sales Tax Law so that start-up businesses can have some breathing room to grow.
The General Sales Tax, effective as it has been, is not friendly to start-ups because the tax is not based on profit. It is based purely on sales.

A small business start-up, even a big business start-up, sometimes needs a year or two before it can turn a profit. With big business its owners may be able to get a development concession which can tide it over the bad times and assist it to grow. But small businesses without this kind of help can, and often do, suffer and die because twelve and a half percent of all its earnings have to be paid in Sales Tax from the very outset.
Government needs to give registered start-ups a chance to grow – a grace period where it can start to make a profit before the 12 1/2 percent sales tax kicks in.

Start-ups are very important to the Belize economy and more and more enterprising Belizeans have begun to think seriously about what they can do to create new jobs and survivable export oriented businesses.
One practical idea is for the government to implement a capital gains tax to take some of the pressure off start-ups. People who deal in land and real estate can afford to pay a modest capital gains tax because their profit margins are rubust.

The people who buy government land on the cheap and turn around and sell at extravagant profits ought to be paying their fair share to help our country in its hour of need.

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