Date Gazetted:	24th November 2018
Sector(s) Affected	Services Sector
Specific Sub-sector	Tourism

The General Sales Tax Amendment Bill, 2018 amends the General Sales Tax Act 2011. Under the GST Act 2011, tour companies were zero-rated on the supply of tour services directed to the cruise lines visiting Belize by providing tours for their passengers. 

The amendment makes reference to the term under section (2), “international transport” and its corresponding definitions being repealed and replaced with “ancillary transport services in relation to goods or passengers” and its corresponding definitions. The purpose of this bill and its new exception releases the Government of Belize from repaying taxes to tour operators in the tourism sector.

This is a controversial reform that can affect the tourism sector and the government. Without the amendment, the repayment of taxes may negatively influence government finances. However, with the amendment, it may lower incentive to grow and invest in the tourism sector. 

The bill has its purpose of replacing the term and definition “ancillary transport services in relation to goods or passengers” which deals directly with the operations or management of a ship, aircraft or other vessel used in the transportation of goods or passengers excluding the transportation of the passengers for tours or other tourist services within Belize.