Belizeans complain about the high cost of living daily. In his State of the Nation address today, Prime Minister John Briceño said that inflation is on a decline. The PM quoted a figure of three-point eight percent, down from six-point three percent in 2024. He also said that there is more than eight hundred million dollars in banking liquidity.
Prime Minister John Briceño
“Inflation is down, falling from six-point-three percent in 2022 to three-point-eight percent in 2024. Banking sector liquidity is abundant, exceeding eight hundred million dollars. The Belizean dollar is stronger, with over one-point-nine billion dollars in foreign assets, and the public finances have been transformed in just four years, with public debt down to sixty-three percent of GDP from one hundred and thirty percent in 2020, fortified by a primary budget surplus of one percent of GDP.”
While the Prime Minister said that the rate of inflation has gone down by two-point-five percent since 2022, the Belize City residents we spoke with disagree. Today, we took our cameras downtown and asked consumers how they feel about the cost of living. They all believe that inflation is heading in the opposite direction, and that the prices that are going up are on basic grocery items.
Belize City Resident #1
Belize City Resident #1
“I don’t know where this come down because I see the price of basic things gone up. For example, you goh buy sugar, ih gone up and you can’t buy more than five pounds of sugar per person. You go and buy a soft drink, and ih gone up, two-twenty-five now. It was two dollars. The bread, the same thing. Ih used to be two dollars, two-fifty. Now, two-seventy-five, two ninety-five. Tell me where is the cost of living going down.”
Belize City Resident #2
Belize City Resident #2
“We deh out ya and we di see the economy, exactly what di happen. Tell and talk the truth to the people mek the people know because wi do have inflation da Belize and deh have it da America. Once ih affect America ih affect Belize, but dehn di trick the people. Come out and tell the people plain.”
Belize City Resident #3
Belize City Resident #3
“Cost ah living can’t goh down when every week nearly everything di goh up. Every other two weeks everything di nearly double the price. Cost ah living nuh di goh down. I da salesman, I di do business, mammy, I di tell yoh, everything di goh up. I di sell natural juice. Sometimes I got coconut water. Bottle di goh up, even the coconut offa the tree di goh up. From shilling – we used to pay twenty cents fi wa whole coconut to sixty cents today. Fi we coconut gone from two dollars a bottle to two-seventy-five, soh cost ah living could ah neva di goh down. I see everybody di complain and di punish, di tek lick. I goh da market and things soh expensive. Seventy-five cents fi one lee dry up lime. Orange gone from six or seven fi dolla to three fi dolla with the skin pahn it. Soh dehn can’t tell we that cost ah living di goh down.”
Belize City Resident #4
Belize City Resident #4
“I nuh think soh cause everything still expensive.”
Marion Ali
“When last you gone da the market and what you pay more pahn?”
Belize City Resident #4
“Vegetables, all. All vegetables.”
Marion Ali
“Significant increases?”
Belize City Resident #4
“Yes, increase by a lot. Everything increase by a lot. Even when yoh goh da the store. When yoh does pay three twenty-five fi wa can ah baking powder, now da seven change. Like ih double the price.”
Belize City Resident #5
Belize City Resident #5
“Nothing nuh di goh down. Everything goh up because from the time I di sell tamales everything still raise higher than weh yoh think and everybody nuh want pay the price fi the thing dehn cause dehn di goh up higher and higher every day. When yoh buy foil parer ih does cost seven dollars, now ih cost eighteen and thirteen dollars, depends pahn the type or brand ah foil paper yoh di buy cause dehn got different type and different size. Soh every day, life – cost ah living fi my kids dehn – chicken gone up long time. Wi deh da three thirty-five fi a pound a chicken right now. Masa done deh da – wi does deh da what, seventy-five cents. Now masa deh da one twenty-five. When yoh goh buy noodles, simple noodles gone from fifty cents to one-twenty-five, simple noodles. And ih look like ih gwein higher every next day.”
Prime Minister John Briceño also announced a new threshold for income tax exemption. All workers who make less than twenty-nine thousand dollars will be exempted from income tax. The threshold was set at twenty-six thousand dollars under the Barrow Administration. We spoke with PM Briceño after the ceremony. He explained the decision in greater detail.
Prime Minister John Briceño
Prime Minister John Briceño
“When the then prime minister introduced reforms to the then tax regime, I think it was in 20009, I remember taking some time out to show him in the House that what he has done is basically increase the tax on people. He said, the threshold is at twenty-six thousand, five hundred, but once you reach that figure you start to pay tax at twenty thousand. So, you were not really doing much for people. Our plan is to eventually get rid of PAYE. That is our goal. How long it will take us, that is dependent on how fast the economy can grow and how fast revenue can grow, because if we use the tax, we have to get it from somewhere. With growth we hope that we will be able to replace it. This is the first step. We took it up to twenty-nine thousand dollars. Anybody that is earning less than twenty-nine thousand will pay zero tax. And those above twenty thousand will pay. There was also an anomaly, the way the previous government set up the income tax, let’s say you are at a threshold of twenty-nine thousand and you get a raise for let’s say a hundred dollars, twenty-nine thousand, one hundred dollars for year, the tax regime says you jump into another bracket. In many instances the reality is that it eats up the raise that you are getting. That was happening especially in the tourism industry. So, I was told that a lot of people in the tourism industry and other industry were forced to pay that in cash, because the workers were saying, I will not take a pay raise, because I am going to get less money at the end of the day. We made that adjustment so that the tax will never be more than the raise.”
PM Briceño was also asked if the new income tax regime is being used as a political tactic to garner support ahead of the 2025 general elections. And, if less income tax goes to the public’s coffer, what will the government do to replace that lost income? Here is how the prime minister responded to those questions.
Prime Minister John Briceño
“No, absolutely not. We said it from early on, this is something that we want to do. We want to be able to see how we could give relief to the middle class. The middle class are the ones paying these taxes. And so, this is the first stop. Remember, when we got into government we got a bankrupt government. We were borrowing a million dollars a day. There is no way we could afford it. So we have to make sure we can grow the economy. When you see that our economy has gone for less than four billion in 2020 to over six billion dollars now, it shows tremendous growth. Now, we have to ensure we collect the taxes. In doing that, we will be able to give more relief to our citizens. What we did is that we looked at the tax rolls from the Belize Tax Service and they said these are the people that are registered. But I believe that with doing this I think we will be able to capture more people within that amount that they will be able to register and pay as a tax payer.”
Reporter
“The total revenue basket must remain the same. So what increase in revenue collection will there be to offset the lose incurred from the income tax break?”
Prime Minister John Briceño
“As I said earlier, as the economy continuous to grow we expect more taxes. With the growth we are projecting, the first quarters of this year we had a ten percent growth. We believe that will be able to offset those revenues. But you are right, there is no such thing as a free lunch. If we give something we have to get it from somewhere else. So we expect with the growth in the economy we will be able to offset those loses.”
Reports of fatal road traffic accidents have increased over the last several weeks. Among those reports is a spike in fatal motorcycle accidents. Commissioner of Police Chester Williams says motorcycles continue to be an issue for traffic enforcement, including police officers. He says the department is looking at the amendment of certain legislation to better regulate motorcyclists.
Chester Williams, Commissioner of Police
“I really and truly don’t know. What else can the police and the Department of Transport do? We would have to have police at every milepost, or traffic officers at every milepost. Because as much as we do enforcements putting in place checkpoints and highway patrols, when the drivers approach a checkpoint, they slow down. And the minute they’re out of sight of that checkpoint, then their usual bad driving habit. We find that many of these accidents are as a result of drivers not paying attention, driving without you paying attention. Motorcycle continues to be an issue. How we address that I think that we have been able to do a number of sensitizations, even creating flyers on safety tips on these motorcycles. Even that is not helping. It certainly will require that drivers of motor vehicles and riders of motorcycles take more responsibility in ensuring that they exercise more caution in the driving of motor vehicles and the handling of motorcycles. Motorcycle riders at time tend to operate in such a way that they don’t, the rules of the road don’t apply to them. They have a separate rule that apply to them, which is not the case. And in some instances, the drivers of motor vehicle have no regards for motorcycle riders. So it’s a dual issue that we have to look at to see how we can address it. But it certainly raises a serious question if we look at the amount of traffic fatalities we have had this year. It’s a lot. for a small country. And so we need to see what else we can do. We continue to be in dialogue with the Department of Transport. We’re looking at the amendment of some laws to be able to regulate more particularly motorcycle riders. And once those laws are amended, then we see how it goes from there.”
Today, the Development Finance Cooperation and the Belize Livestock Producers Association signed a Memorandum of Understanding to establish collaborative assistance to livestock producers nationwide. The MOU seeks to establish climate smart practices among small, medium, and large producers to improve resiliency and sustainability. Here’s News Five’s Britney Gordon with more details.
Britney Gordon, Reporting
When you think of iconic Belizean dishes, rice and beans and chicken or cow foot soup may come to mind. Without farmers and ranchers across the country, the food we know, and love may not be accessible to make. That is why the Development Finance Cooperation, and the Belize Livestock Producers Association are partnering to increase support for these valuable members of Belizean society. The Chief Executive Officer of the BLPA, William Usher, tells us about this partnership.
William Usher
William Usher, CEO, Belize Livestock Producers Association
“This partnership signifies a new chapter in the development and modernization of the livestock industry in Belize. An industry that is crucial not only to our economy, but to the livelihoods of thousands of Belizean farmers and ranchers. The livestock industry is critical to Belize’s economy and the livelihood of thousands of Belizean families. Our members are not just producers. They are stewards of the land, custodians of sustainable practices, and contributors to the food security and economic wellbeing of our nation. Since its establishment in 1977, BLPA has been committed to the growth and sustainability of the livestock sector, from implementing the Belize National Sanitary Cattle Plant Project, which paved the way for our National Traceability System, to improving the to represent over 7000 cattle farmers with a total herd of nearly two hundred thousand animals. We have worked tirelessly to ensure that Belize’s livestock industrymeet both domestic needs and international standards.”
One of the key components of the MOU is resilience, as industry stakeholders work towards overcoming challenges such as climate change, fluctuating market conditions, and evolving environmental regulations.
William Usher
“These solutions, such as the climate resilient cattle loans, are expected to directly address the financial gap many small, medium and large farmers, ranchers face, but financing alone is not enough. This partnership also emphasizes capacity building and technical assistance, where BLP and DFC will work together to educate farmers on climate smart practices and modern herd management techniques. In an area of changing climatic conditions. Adopting sustainable farming practices is essential to protecting the environment, ensuring food security and enhancing the resilience of our sector.”
The DFC has committed to stand with livestock producers when threats arise in the industry and meet the needs of the farmers through financing solutions and preventative measures.
Henry Anderson
Henry Anderson, C.E.O., Development Finance Cooperation
“The last time we had to deal with a big threat in this area was back in 1994. And some of the practices that the farmers used to use then have gone. And so we may have to get ready to rebuild that. So we’re signaling that we realize that. And we are prepared to work and to see what DFC can do. Because we’re a development finance institution, We have a level of flexibility and patience and to be able to give forbearance where it’s needed to work through situations. So that is a strength that we bring. So as you said William, we see this as an opportunity to grow. We see it as a relationship. It’s not a piece of paper and w e look forward to celebrate milestones with, one of the ultimate milestones being to see that we have an industry that’s net zero.”
Belize will soon see the roll out of several new currency designs. Prime Minister Briceño gave reporters an update today. He said that the new designs have been presented to him and they will be presented to the public after the September celebrations are concluded.
Prime Minister John Briceño
“The Central Bank, the governor came to my office, I think about two weeks ago to show us the new dollars. We will be using the national heroes, both George Price and Phillip Goldson. They are the ones that are going to be on the face. So the new dollars will be introduced later this year or early next year. So, it will be changed but it will have a lot of other features to protect against counterfeit. So, there is a process and also to ease out the old dollar bills. It is already done. It has already been approved. We have introduced it to Cabinet earlier this year. I am old the governor that after the September celebration I want him to come and show the actual bill. So, its coming.”
Paul Lopez
“Any insights on the color scheme, all blue notes?”
Prime Minister John Briceño
“I would not object, but actually it is blue and red.”
Importers of diesel fuel and biodiesel will pay a standard tax for petroleum oil, following the passage of a new piece of legislation in the National Assembly. On Friday, the Briceño administration introduced and read through the bill in the House of Representatives. According to Prime Minister John Briceño, the reason for the tax being applied evenly is because there are no facilities in the country that can test regular diesel from biodiesel.
Prime Minister John Briceño
Prime Minister John Briceño
“The practical effect is that all diesels are going to be paying the same tax because somebody could be bringing in real diesel and seh da biodiesel and they have no way of knowing that. You would have to take that, I am told that it has to be sent to El Salvador to be able to test here. So, for practical reasons, it just means that all, any fuel that’s called diesel will pay the same tax. In this case, Puma that already has an established network and services that they provide to Belize.”
Over the weekend and leading up to this morning, it appeared as if Belize City experienced a tropical storm that dropped at least four inches of rain fall. Streets across the city were flooded, but there has been little to no rain in sight for the past few days, in fact it has been extremely dry and hot. So, what explains the flooded streets? The speculations were that an unusually high tide came in and inundated the streets with water. Well, the National Hydrological Service is saying that the flooding is because of both the high tide and floodwaters swelling the banks of the Belize River and Haulover Creek. News Five’s Paul Lopez reports.
Paul Lopez, Reporting
Streets across Belize City have been inundated with water for the past three days. But there has been little to no rainfall. Sharon Gullap lives on Mex Avenue. She has lived at this exact location for several decades. She is now witnessing something she says she has not seen all her life.
Voice of: Sharon Gullap
Voice of: Sharon Gullap, Belize City Resident
“The water I coming up pretty high. It comes about four or five inches across the bridge. My neighbor over there, it is like about to go in her house. Over there, it is totally downstairs. The alley there, it is totally filled. They cant even walk through it. These are all new happenings for us, not just hightide. When Belize have floods or hurricanes, we know that happen. But, I have been here, many years, over sixty years and this is new happenings.”
When we arrived at Gullap’s home this morning, the water had receded partially. She placed a wooden pallet to access her property. She also had to clog some pipes to prevent flooding on the first floor. King Street, Dean Street, areas of Port Loyola and Belama all saw flooded streets and yards. Residents initially suspected that this was being caused by an abnormal high tide over the past three days. But the National Hydrological Service says otherwise.
Carmelita Blanco
Carmelita Blanco, Hydrologist, National Hydrological Service
“The flooding that is currently being experienced in Belize City is as a result of the riverine flooding since the Belize River is making its way naturally down the riverine system and emptying out into the Haulover Creek. So, all the areas that are along the Haulover Creek are the areas that are currently experiencing the flood.”
Paul Lopez
“There are some suggestions that it could be as a result of hightides, I don’t know if you are hearing that.”
Carmelita Blanco
“Yes, that is in the areas found more in the Marine Parade area. That is where the interaction with the hightides comes into play.”
According to Blanco, excess rainfalls experienced last week led to the Belize River reaching flood stage. She advises residents to continuously monitor the situation as they are unable to provide an exact time period for the river to return to its average height.
Carmelita Blanco
“So all this rain allowed the Mopan River, Macal River reach a bank full stage. As we know, the Macal and the Mopan River form the Belize River. So, all this water needs more space, more room for it to flow. So, since it has arrived at maximum capacity, that is what allows this overflow to take place. What I would advise residents is to continue monitoring the flood forecast that is being issued everyday.”
But for Sharon Gullap and her neighbors, this explanation may provide little to no sense of comfort. Her home is situated near the Belize City Pumping Station. Only last week, the street that runs parallel to hers, Myvett Street, was completely under water.
Sharon Gullap
“Since they did the streets everything started acting different, and since they put that thing there at Yabra it is a whole different thing cause this, I would want to blame it on that, because we never see it before. Give it two hours, it would be there, then it goes down and it comes back up. But we were not having any rain, but now we are going to have some rain, so I don’t know what is going to happen. I am sure climate change has a lot to do with a lot of what is happening, but this drainage, we need drains. I think Belize needs drainage. We don’t have drainage.”
On Thursday afternoon, fifty-three-year-old Ana Chanim and another unnamed woman were injured when a piece of concrete fell on them at the Novelo’s Bus Terminal here in Belize City. Chanim was rushed to the Karl Heusner Memorial Hospital after the cement fragment injured her right collarbone. It’s an accident that has left many questioning the soundness of the structure. The Transport Department has since issued a statement informing us that an investigation is underway. The ministry also says that it will be reaching out to the families and doctors for updates on their conditions. This afternoon, Prime Minister John Briceño spoke briefly about the need to repair the building.
Reporter
“Sir, would you weigh in on the incident at the bus terminal. As the Minister of Finance, do you believe that monies should be allocated to that entire structure? At the bus terminal a portion of concrete fell on a woman and it could have practically killed her.”
Prime Minister John Briceño
Prime Minister John Briceño
“Well, I have not gotten the report as to what happened and I am not going to dispute it but yes, that whole area has to be completely redone.”
