Fuel Tax Cuts Drain $80M from Belize Revenues

Eighty million dollars. That is how much Prime Minister John Briceño says his government has already given up in tax revenue trying to shield citizens from rising fuel prices.

Briceño confirmed the figure this morning, saying the government has no choice but to keep absorbing the hit. “We just can’t afford to pass the entire cost to our citizens. As a government, we have decided we have to cut the taxes of what we charge.”

The most recent reduction amounted to approximately one dollar per gallon, according to Briceño.

The latest price adjustment, which took effect at midnight, shows prices are still going up. Regular gasoline jumped by over a dollar per gallon, while premium and diesel both came down, leaving premium cheaper than regular at the pump. Kerosene also dropped.

Despite the cuts, taxes and government charges still make up roughly one quarter of what motorists pay per gallon on average.

Meanwhile, the Opposition is adding pressure. UDP Leader Tracy Panton this morning called the current high cost of living and high cost of fuel “COVID 2.0” during her appearance on the Open Your Eyes morning show.

“This is COVID 2.0. COVID was not incubated in Belize, for a lack of better term, it was imported. What is going on in the Middle East affects the acquisition cost of fuel, and therefore, as the prime minister liked to say, ‘Inflation is imported,” she said.

Panton argued that despite the ongoing and volatile war in the Middle East driving fuel costs, the government still has a responsibility to act.

“As the prime minister liked to say, ‘Inflation is imported,’ but we have a responsibility as a government to mitigate the impact on Belizeans, the working class, the vulnerable,” Panton added.

PM Briceño maintains that its government is “doing as best as possible to hold down the cost.” While the government continues looking at ways to trim goods and services spending to balance the budget, Briceño said social programs are off the table.

“Despite the price of fuel continuing to go up, we are cutting the tax because we want to try to find a balance between the cost of fuel and the taxes the government charges,” Briceño added.

More tonight on News 5 Live at 6.