Rowley: Govt sneaking in worse bill for Carnival
By Aabida Allaham aabida.allaham@trinidadexpress.com
Story Created: Feb 23, 2011 at 10:40 PM ECT
(Story Updated: Feb 23, 2011 at 10:40 PM ECT )
PRIME MINISTER Kamla Persad-Bissessar says the Government has no intention of re-enacting the property tax.
However, Opposition Leader Dr Keith Rowley says Government has, in fact, laid a bill to re-enact a 7.5 per cent tax on lands and buildings using the "annual rental value" created by the People's National Movement (PNM) for the property tax. In the old Lands and Buildings Tax, the rate was 7.5 per cent, but it used annual taxable values ascertained back in 1945, he said.
Rowley, who made the announcement at a news conference at the Opposition Leader's office in Port of Spain yesterday, also accused the People's Partnership of trying to sneak in a property tax bill worse than the one passed by the PNM last year as the rate is higher and the exemptions are fewer.
"In the dead of night, on the eve of Carnival when everybody is paying attention to Carnival, the Government slips this bill into the Parliament," Rowley said.
The bill, which Rowley produced a copy of, is not dated and does not say when Government intends to bring it before Parliament, but states it is "an Act to repeal the Property Tax Act, 2009 and to re-enact the Lands and Buildings Taxes Act and part five of the Municipal Corporations Act, which were repealed by the Property Tax Act, 2009, and to reverse some of the amendments made by the Valuation of Land (Amendment) Act, 2009".
The move will mean greater revenue for the Government, but Rowley —who admitted the Government does not need the support of the Opposition to pass the bill—said the Opposition will not support it.
The people of Trinidad and Tobago are being betrayed on a daily basis, and this is the unkindest cut of all," he said.
Last year, Rowley accused the Government of "shameful" behaviour after it reneged on a promise to increase the old age pension to $3,000. Yesterday, Rowley said while the property tax was needed, the People's Partnership should not be the one instituting such a bill, considering the party campaigned on "axing the tax".
"This Government, this group that is in office, has no moral authority to take this action against the people of Trinidad and Tobago, and until the people of Trinidad and Tobago go back to the polls and choose a new Government, they should not allow themselves to be taxed by a Government that held out to the masses a contract that they will not do this, and while they are in office, do it against the people's expectation," he said.
Back in November 2009, hundreds took part in a rally, hosted by the Congress of the People (COP), protesting against the then proposed property tax. Deputy Leader of the COP Prakash Ramadhar, now Legal Affairs Minister, was instrumental in the rally and led the COP's 2010 election campaign on the basis the tax would be repealed.
As part of the property tax, the PNM had proposed to levy a tax of three per cent on residential properties, five per cent on commercial properties and six per cent on industrial plant and buildings, and it was to be calculated using the annual taxable value by ascertaining the annual rental value of the land or building.
Yesterday, however, when Persad-Bissessar was asked whether her Government proposed to re-enact a tax similar to that of the property tax, she insisted this was not true.
"I am hearing the Opposition saying that we are going to bring back the property tax. No, no, not true. In fact, we have approved a bill that will repeal the act that was passed by the last administration, so that is totally false, totally false," the PM said.
"Each week, we have to deal with some of the falsities. I know last week they were saying that we were going to remove the fuel subsidy. Not true. This week, they are saying that we are going to bring back the property tax; no way, it's not happening. The bill, to be introduced in the Parliament, should land in the house today (yesterday) or by Friday in Parliament to repeal the Property Tax Act that was passed last year." she said.
—with reporting by Akile Simon