Dean Flowers, President, PSU
GoB claps back on claims of SARA transition job-loss, calling it mischief-making
BELIZE CITY, Wed. Aug. 6, 2025
The Public Service Union (PSU) first publicly raised concerns about the Government’s plan to transition the Belize Tax Service Department (BTSD) into a Semi-Autonomous Revenue Authority (SARA) when the 8.5% salary increase for public sector workers had become a flashpoint issue earlier this year. PSU president Dean Flowers would subsequently speak on it several more times before the Union called BTSD employees to an urgent meeting to discuss the matter on July 29. Prior to the membership meeting, Flowers had reported that representatives of the PSU and other union leaders had been called to a meeting by the management of the BTSD and other government officials on July 16, when, for the first time, they were formally apprised of the plan. He said it was the first time they were being notified as the bargaining agent for the employees.
For its part, in a release addressing the concerns today, the Government reported that Cabinet, from October 2022, had approved the transition. We at AMANDALA could not find any Cabinet release pointing to this specifically. The only close reference in 2022 appeared in a Cabinet brief from March 31, 2022, which stated that Cabinet had approved the “unification of tax administration to be done in a phased approach aimed at the restructuring of revenue administration through consolidation and modernization. This will allow for all major tax revenue entries to be administered and collected by one revenue department or authority. These tax revenue centers would include tax collecting centers such as the Customs Department, Ministry of Natural Resources, and the Belize Tax Services, among others.”
Speaking with the media after the July 29 meeting with BTSD employees, Flowers underscored that the Union is not opposed to the SARA transition. Their concern, he said, was ensuring that the process is carried out properly. He insisted that, based on the options provided to staff (and despite the fact that the plan is to increase the number of staff in the SARA to some 400 persons), some existing BTSD employees would be displaced. According to the PSU, the BTSD currently has 236 employees.
Flowers outlined the three options presented to the staff: resigning from their posts; transferring into other areas of the public service; or applying for employment under SARA. “What if I am not in a financial position to resign?” he questioned. Flowers said that based on information they have been given, employees who have less than 10 years of employment at the BTSD would not have a vesting period, and would therefore not be entitled to severance or gratuity. “You get to go home!” he declared. His assessment is that employees are in actuality being forced to resign with nothing, but this is being falsely classified as an option. He indicated, however, that after their meeting with the union leaders, the BTSD management changed its narrative and said it would consult with the Labour Department. Flowers emphatically declared, “There’s no need to consult with the Labour Department. The Labour Act already provides that after five years, people are entitled to a severance.” He noted, though, that the employees at the BTSD are permanently established staff, entitled to a gratuity and pension if they have provided a certain number of years of service. With that being the case, Flowers said, an improved separation package should have been designed for them.
As to the option to transfer into the wider public service, Flowers questioned, “Transfer where?! You’ll treat them like what you did to those officers at the Companies Registry? Transfer a deputy director to a clerk – because the only place you could have put them was a ministry you could have found to squeeze them into?”
Regarding the third option of applying to the SARA, Flowers’ concern is that applicants would face a politically appointed interview panel. He asked, “To apply to the job I am already entitled to?!”
Michelle Longsworth, Director General, BTSD
Responding to the claims, the Director General of the BTSD, Michelle Longsworth, described the claims being made by Flowers as mischief-making. She noted that sensitization with staff is ongoing about the transition, and insisted that no one will lose their job. She clarified that the existence of 153 positions does not equate to only 153 individual employees. For instance, she said, while “cashier” is listed as a single position, currently multiple employees serve in that role across various locations countrywide.
In a one-page FAQ (frequently asked questions) sheet drafted by the BTSD, the management affirms that all current BTSD staff are guaranteed continued employment, and they will be “given first consideration to apply for positions within the new SARA structure.” As it relates to pension, the FAQ sheet states, “If you choose to remain in the Public Service or retire, your pension benefits remain intact. If you join SARA, your service with the Public Service will end, and you will be compensated following the PSR and Pensions Act.” In the event an employee applies to the SARA but is denied a job, the FAQ sheet states, “You will remain in the wider Public Service and you will be placed in another department.” Ultimately, the BTSD has assured its employees that, “whether you transition or stay in the public service, your years of service are recognized and factored into any benefit considerations.” According to Longsworth, employment of a current BTSD employee under the SARA will require resignation in order to enter an entirely new employment arrangement. She said they are following best practices of tax administrations around the world.
The BTSD has indicated as well that SARA’s employees will receive market-aligned salaries and follow modern HR policies, including an improved pay structure, clearer promotion paths, and benefits geared toward meritocracy, thus ensuring that strong performance is recognized and rewarded. The release expands on this, saying that the performance-based environment will reward “dedication and excellence, while holding all employees accountable for delivering efficient, high-quality public service.”
Employees of the BTSD met with their bargaining agent, the Public Service Union on July 29, 2025
In its lengthy release today, the government addressed a claim by Flowers that the government has not provided any data that speaks to the success of the amalgamation of the Income Tax Department and the General Sales Tax Department into the BTSD in August 2019. The release states, “Records show that the Department has consistently met and exceeded the tax collection targets set by the Ministry of Finance, and has performed strongly against international benchmarks…” In fact, it affirms that the BTSD is recognized internationally as a leading tax administration.
The Government says the transition to SARA is part of its broader tax modernization strategy which was reaffirmed publicly in the Prime Minister’s 2025/2026 budget speech. It adds that the reform is being implemented with technical support from the Caribbean Regional Technical Assistance Centre (CARTAC) which also guided the 2019 amalgamation. In November that same year, the Government obtained a loan from the Inter-American Development Bank (IDB) to strengthen and modernize Belize’s tax administration, including through a new Revenue Management System and the procurement of the IRIS portal for taxpayers to manage their accounts and offer regular employee training. The government points to an increase in the tax-to-GDP ratio from 12.8% in 2019 to 15.6% in 2024 “without any increase in the rates of business tax or general sales tax” as one of the positive outcomes of the project.
Another clarification by the government is that the taxes collected by the SARA will continue to be deposited into the Consolidated Revenue Fund.
The announced timeline for the start of the transition into the SARA is December 2025. The Government writes, “SARA will operate as a performance-based organization, designed to ensure greater accountability, efficiency, and service delivery, while strengthening compliance and revenue collection.” As part of the transition, a legal framework must be developed alongside stakeholder consultations and a public education campaign.
