Saturday, December 17, 2011

PM says IMF can "GO FLY A KITE!"


Political campaign underway with BOMBAST from the Prime Minister. Certainly we will not expect a rise in GST sales tax until after the GENERAL ELECTION in 2012.

From Channel 7 TV news.

PM to IMF: Go Fly A Kite

The IMF Staff report for Belize was released 10 days ago. It was generally favourable but one thing that caught everyone's attention was the recommendation that the Government raises additional revenues by gradually raising the GST rate to 15 percent which is the regional average.

Well, today the Prime Minister just about exploded when we asked him if it was being considered.

Jules Vasquez
"The IMF report is out and they are recommending many things but among them are that Belize needs to its GST in line with the rest of the region and raise the GST to 15%. Are you inclined to do that or may you be force to do that?"

Prime Minister Dean Barrow
"How can they force me? The IMF can cry until the cows come home. Absolutely not, I reject that out of hand. The only way the IMF can force me to do anything is if I need to borrow money from them, if I need to enter into a standby arrangement and I absolutely do not need to do any such thing, so the IMF can go fly a kite."

"What kind of nonsense is that? Because other people are 15% we must be 15%. They are 15% because of their own circumstances. Let me not get upset. This is Christmas time but the IMF is being ridiculous and I reject them out of hand."

Alternately, the IMF has recommended that Government could fully phase out the 2010 tax concessions - which, we expect, will be rubbished with the same contempt as the 15% GST recommendation.

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