The Belize Tax Service Department (BTSD) is undergoing a major transition to become a Semi-Autonomous Revenue Authority (SARA), a change formally approved by the Cabinet in October 2022 and now underway. The reform is part of Belize’s broader tax modernization strategy, which aims to strengthen tax administration, improve service delivery, and support long-term economic development.
The transition, supported by technical consultancy from the Caribbean Regional Technical Assistance Centre (CARTAC), includes adopting advanced digital systems such as the IRIS Belize Portal, which provides taxpayers a secure, user-friendly online platform to manage tax affairs in real time. With funding from the Inter-American Development Bank (IDB), BTSD has also procured a new revenue management system integrating e-filing, e-payments, and other digital services to boost efficiency and reduce compliance burdens. The reform builds on earlier consolidation efforts that merged the income tax and general sales tax departments, paving the way for the next phase of modernization.
The move to SARA is expected to introduce electronic invoicing, expanded data analytics, and a performance-based structure emphasizing accountability and service quality. However, the transition has faced significant opposition. On August 15, the Public Service Union (PSU) formally rejected the reform, stating, “the current process is legally flawed, procedurally unjust, and devoid of empirical justification. The imposed options on officers—resignation, transfer, or re-interview—constitute a fundamental rupture of their constitutional and contractual rights. We call for an immediate suspension of the SARA transition pending comprehensive consultation, constitutional compliance, and evidence-based analysis of BTSD’s performance.”
The PSU noted, “an alarming volume of formal requests from staff seeking immediate transfer out of BTSD, representing approximately 35% of the department’s workforce. This unprecedented surge is a direct indictment of the flawed and insecure process imposed upon them.” Other stakeholders have also voiced concerns about the semi-autonomous model.
Despite the criticism, BTSD’s performance record remains strong. Since its establishment, the department has invested heavily in staff training and capacity building, consistently exceeding fiscal targets. Belize’s tax-to-GDP ratio has grown from 12.8 percent in 2019 to 15.6 percent in 2024 without tax increases, underscoring BTSD’s efficiency and alignment with national priorities like Plan Belize for fiscal sustainability and economic growth.
Government representatives have stressed that the transition is intended to strengthen, not weaken, the workforce. “Every current employee of the BTSD will be guaranteed continued employment,” they stated, adding that SARA will offer improved terms, competitive compensation, and career development opportunities. Officials rejected claims of job losses, emphasizing that SARA will remain accountable to the Minister of Finance and the public.
Looking ahead, the reform promises to transform Belize’s tax administration framework. Still, with resistance from the PSU and other stakeholders, questions remain about whether the rollout will proceed as planned and if the new structure will be fully implemented.