Tax Reform Delayed, SARA Now Set for 2027

Belize’s ambitious tax reform initiative has encountered a significant delay, with the launch of the Semi-Autonomous Revenue Authority (SARA) now rescheduled for 2027. Originally anticipated to roll out sooner, the government has extended the timeline to allow for a one-year grace period before the transition begins. During this interim phase, the Belize Tax Services Department will continue its operations without disruption. Authorities are currently finalizing critical details, including staff salaries, insurance benefits, and job roles, to ensure a smooth transition to SARA. This reform is a cornerstone of Belize’s broader strategy to modernize its tax collection and management systems, promising enhanced efficiency and user-friendliness through digital platforms like the IRIS Belize Portal. However, the delay has sparked concerns among stakeholders, particularly the Public Service Union (PSU), which represents many affected employees. The PSU has criticized the lack of adequate consultation and raised alarms about potential impacts on workers, operational costs, and national revenue. Tensions escalated recently when the PSU’s letter to the Prime Minister reportedly went unanswered for weeks, fueling speculation of a possible strike. The government’s decision to postpone SARA’s implementation reflects a more cautious approach, though it remains uncertain whether this will alleviate the growing discontent among union members.