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A Predatory Tax
On August 15, 2000, the GOB (Government Of Belize) through
its Ministry of Tourism, enacted an exit tax. The exit tax has its roots
in the Departure Tax Act (Chapter 50) which inflicts a $10US tax on every person
leaving Belize by International Airport. This tax, similar to other
airport taxes in other parts of the world, is added on to the ticket, and is
relatively small compared to the cost of the airplane ticket.
However, the new exit tax, designed to finance the Border
Management Authority (see Border Management Agency
Act--Chapter 144) was
originally exacted on all foreign nationals leaving Belize. On the day
it was instituted on the Guatemalan Border, the Guatemalans shut down the
border; people were being stranded in Belize because they didn't have enough
money to pay the exit tax. The same thing happened to Mexicans at the Northern
Border, who had come to Corozal for a meal, spent all their money, and then
couldn't get back across the border!
Originally, after the tax was exacted, the payee had 48 hours of free passage across the border. However, within a month, two
changes were made.
1. Guatemalans and Mexicans were given 72 hours
"grace" in Belize before they have to pay the tax, effectively
excluding them from paying it.
2. The 48 hour free passage for others (i.e. Gringos) was
eliminated, ensuring that they will pay it every time they cross.
This leads to some interesting situations for gringos.
Dry Cleaning. There are dry cleaners in Chetumal
and Belize City. Belize City is 85 dangerous miles away (see Traffic). If I take
my cleaning to Chetumal, OOPS, $10US to drop it off. Pick it up the next
day, OOPS $10 more! $20US ($40 Belize -- a day's wage) added to my
cleaning bill, just because I wore those nifty tropical worsted pants by
mistake.
Film Developing. There's a 2-hour film developer
in Chetumal. It's a little pricey, but you get to look at those pictures
right away. However, if you're a gringo, OOPS, add another $10 US on the
the cost of development.
Tourist Passage. Tourists entering Belize on the
Guatemala border by bus, and leaving four hours later, have an extra $10 to pay
to get out of the country. "Not much", you might say, but to the
backpacking "eco-tourist" that's the cost of a meal or a hotel room in
Mexico.
For Tourists: HOW TO AVOID THE TAX
1. Don't come to Belize.
2. If you do come, don't leave!.
3. Become a Permanent Resident. (Permanent residents don't pay.)
For the GOB: Some potential alternatives:
1. Had the exit tax been integrated with the already existing $7.50
environmental improvement tax, it might have been unnoticed. Also, it
would have utilized the collection mechanism already in place, rather than
adding a dozen non-productive jobs. (Hint: "Counters" and
"Watchers" don't add to the GDP.)
2. If the tax burden was shared by all travelers (yes,
including Belizians) it would
not seem so blatantly predatory.
3. If the government ran the money changing operation at the
border, they could finance a new bridge as well as cleaning up the parking
lot.
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