PROPERTY TAX D RETUN

[weary1969]

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Act, 2009 and to re-enact the Lands and Buildings Taxes Act and part five of the Municipal Corporations Act, which were repealed by the Property Tax Act, 2009, and to reverse some of the amendments made by the Valuation of Land (Amendment) Act, 2009".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

[weary1969]

Ramadhar on new property tax bill...
Back to the old law
Published: Thu, 2011-02-24 18:29
Richard Lord
 
Legal Affairs Minister Prakash Ramadhar Hours after Opposition Leader Dr Keith Rowley broke news of the Government’s move to introduce and approve legislation to approve a new property tax bill, Legal Affairs Minister Prakash Ramadhar said he fully supported the initiative. Ramadhar had been among the leading critics of the Property Taxes Bill introduced by the former PNM government in 2009. Ramadhar said it was not true to say that the Government was reintroducing the property tax. “The property tax which they (PNM) envisaged, we have removed that.”

He was questioned by reporters during yesterday tea break of the House of Representatives sitting at the Red House in Port-of-Spain. He said the People’s Partnership Government was reverting to the law as it obtained before the property tax. Told that it was just a change of name as the two bills were very similar, Ramadhar quickly responded: “Not at all, not at all.”

Told that the new bill proposed a seven-and-a-half per cent rate of tax for residents as opposed to three per cent under the PNM bill, the Legal Affairs Minister said: “Well, I am saying that we are returning to what was there before, which the population had found comfort in and had found great fear in the legislation they brought. “That’s as simple as I could put it,” he insisted. Ramadhar, who is expected to speak in the debate, said he could not comment on the details of the People’s Partnership bill. “What I am saying is that we are returning to the original position.”

[weary1969]

It’s a betrayal says Rowley
Published: Thu, 2011-02-24 18:29
Richard Lord
 
 
Opposition Leader Dr Keith Rowley Opposition Leader Dr Keith Rowley says the People’s Partnership Government is moving to approve a new property tax bill. Rowley, who called a news conference at his Charles Street office in Port-of- Spain yesterday to announce the development, declared: “This is a betrayal.” During the May 24, 2010, election campaign, the People’s Partnership was critical of moves by the then PNM government to revise and rename the tax and promised it would be abolished if they were elected to government.

The Congress of the People (COP), one unit in the People’s Partnership coalition, led an “axe-the-tax” campaign. Rowley said yesterday: “In the dead of night, on the eve of Carnival, the Government slips this bill (Lands and Buildings Taxes Act) into Parliament.” He said the People’s Partnership was elected to govern this country because of its election promise to abolish the tax. Since the PP assumed power, there has been an amnesty on the tax and residents have not been paying it.

Rowley said the taxes were necessary to assist in the development of the country. He said the new bill proposes to increase the tax by more than 100 per cent of what the former PNM government had proposed. Rowley, reading from the new bill, said residential property tax would increase from three per cent under the former government to seven-and-a-half per cent annually. He added that the bill contained a provision for the Minister of Finance to subsequently increase the tax by a further three per cent to ten per cent.


He described the move as “the worst betrayal that can happen in the political environment in T&T.” Rowley said the Kamla Persad-Bissessar administration had squandered its mandate. “As they have laid this before the Parliament, even before they debate or pass it, this Government has now destroyed its legitimacy in the eyes of the population,” he said. He added that the PP had “no moral basis to hold on to office in this country or to govern the people of this country.”

The Opposition Leader said whether it was called land and building tax or property tax, it is the same. He also said the bill proposed by the PP retained many of the provisions contained in the Property Tax Bill, including a provision to forfeit the property of non-paying residents. Rowley said under the former property tax, the University of the West Indies, the University of T&T, the University of the Southern Caribbean and cemeteries were exempt from the tax, but in the new bill only UWI was exempt. He said “under no circumstances” would the Opposition support the proposed legislation, which required a simple majority for passage.

He said the PNM was not saying the tax was not necessary, but was of the view “that this Government has no moral authority to take this action against the people.” Rowley said citizens of T&T should not allow themselves to be taxed until there were fresh elections. He said two years ago when citizens had jobs and the economy was stronger, they were told not to pay the three per cent tax. Former finance minister Karen Tesheira had predicted that the PP Government would have to bring property tax, even if it was called by another name.

[weary1969]

Prakash: Citizens will be comfortable with new rate
By Anna Ramdass

Story Created: Feb 23, 2011 at 10:40 PM ECT

(Story Updated: Feb 23, 2011 at 10:40 PM ECT )

Government will be moving to ensure there is a tax rate that the people of this country are comfor table with, says Legal Affairs Minister Prakash Ramadhar.

Ramadhar made the comment yesterday in response to claims by Opposition Leader Dr Keith Rowley that Government was moving to increase taxes and apply a 7.5 tax increase across the board.

Speaking with the media during the Parliament's tea break, Ramadhar said there was no truth to this.

"There is no return to the property tax as they envisage. We are returning the law to what it was before. That is really a statement that is inaccurate; the property tax which they have envisaged, we have removed that," Ramadhar said.

Asked if the legislation tabled— which is the old land and building tax —will entail increases, Ramadhar again assured the tax proposed is what the people would be comfortable with.

"If you have a low value with a high percentage, the net sum will be less than if you have a low percentage with an extremely high value, it is simple maths. The population was comfortable before with the rates that they were paying; we fought vociferously against it; we succeeded. We delivered our promise to remove the new property tax; we turn to the old position," he said.

Ramadhar said he could not speak about the details of the legislation but assured the tax which the People's National Movement (PNM) proposed will not be implemented.

[Dutty]

well that just sucks....double plus 2 dry so?

[weary1969]

well that just sucks....double plus 2 dry so?

IT GOOD 4 WE.

[Jah Gol]

I not saying nutten.

[weary1969]

I not saying nutten.

These peeps is d best last yr they eh collect no tax. My bff comes home evry June 2 pay her property tax. Last yr she came home and no money was taken So this yr she comin 4 carnival 4 d 1st time sice she migrated. She betta go 1 less All Inclusive 2 have money 4 she property tax.

[weary1969]

Come clean on LAND TAX—Tesheira
Published: Sun, 2011-02-27 23:53
 
 
Karen Tesheira The property of tax defaulters will be forfeited in one year if the new Land and Building Taxes Act being put forward by the Government is implemented. Old age pensioners, the vulnerable and earners of fixed incomes will also be hard hit in addition.  Citizens will pay “significantly more” land and building taxes if the new rate—7.5 per cent—on the annual rental value is applied.

In an interview with the Sunday Guardian yesterday, former finance minister, Karen Tesheira said the People’s Partnership must tell the nation if the assessment is to be based on the 2008 rate or current updated valuation of 7.5 per cent. Tesheira said if the 2008 valuation was to be applied, citizens would have to pay the rate that obtained then.  If they are going to use the updated valuations—which they have provided for in the Valuations Act and also in the Lands and Building Taxes Act—however, people are going to be paying significantly more taxes.

Giving an example, Tesheira said the tax paid on a $20,000 property under the 2008 valuation would have been just over $100, while the owner of the same property now valued at $300,000 would have to pay an estimated $2,800 in taxes, at the updated rated. “The Government has to tell the nation about the effect of the legislation,” Tesheira added. The Lands and Building Taxes Act, to be presented for debate by Finance Minister Winston Dookeran, she noted, removes the exemption granted to old age pensioners and earners of fixed income.  “So there is no provision for exemption of taxes for categories of persons who are in certain financial situations,” she added. Under the PNM’s Property Tax, this group of people were exempted from the taxes.

Tesheira revealed that in the former Property Tax Act, the property of citizens in default of paying the tax would have been forfeited within a period of five years. In the PP Bill, defaulters would lose their property in 12 months. While the Government is claiming the Bill was the same as what existed before the Property Tax was passed in 2009, Tesheira said if the new Bill would lead to increase taxes, then it would not be the same. “It cannot be the same if I am not paying the same thing,” she stressed. She said the new legislation also gives Dookeran the authority to increase the rate for residential property by Order to ten per cent. Last week, Prime Minister Kamla Persad-Bissessar denying this, said: “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.”

[weary1969]

Dookeran: Govt to make adjustments to 'old' tax bill
By —Aabida Allaham

STANDING by an election promise to "axe the tax", Finance Minister Winston Dookeran says the People's Partnership will be repealing the property tax passed by the previous administration.

However, he told the Express there would be some amendments to the "old" bill.

Speaking during a telephone interview last Friday, the Finance Minister said, "We will be repealing the Act, that was never constitutionally enforced, but it was passed.

"And the mission is that the old property tax will be reinstated at the old values and old rates," he said.

However, when asked about there being any significant changes that could impact on the final amount people would have to pay, Dookeran insisted the "legal manifestations of that have to be sorted out".

"They have to make some adjustments to the annual ratable value provision.

"You see, what had happened in the past is that the Government had that provision in the old tax, but they never enforced it... and we have to remove that."

For the Government to reinstitute the old land and building tax, he said, several provisions will be made, while others will be removed "to be able to effect the old rates and old values".

In fact, after Express compared the old Land and Buildings Act to the one being proposed for re-enactment, there is a new section which gives the Commissioner of Valuations the right to conduct valuations to determine present Annual Taxable Values (ATV).

Under the old Lands and Buildings Tax, Section 9 (2), there were specified taxes for land, while authorities calculated the ATV as six per cent of the capital value of the building before charging the seven and a half per cent.

In the bill to be re-enacted, which was introduced to Parliament on February 18, it says the same thing.

The only difference is that in Section 10, it states, "Notwithstanding Section 9 (which describes the mode of fixing the annual taxable value according to the old Bill), the Commissioner of Valuations shall conduct valuations in respect of all buildings and all machinery and plant therein for the purpose of the District Revenue Officer determining the annual taxable value of any building under this Act."

On February 23, Opposition Leader Dr Keith Rowley said Government 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.

However, Prime Minister Kamla Persad-Bissessar denied this and described it as a misrepresentation of what they were actually going to do.

Legal Affairs Minister Prakash Ramadhar, who was instrumental in leading rallies protesting the People's National Movement's decision to implement property tax back in 2009, later added that Government was moving to ensure there is a tax rate the people of this country would be comfortable with.

And last Thursday, Attorney General Anand Ramlogan told reporters at the post-Cabinet press briefing the plan is not to bring back the tax, but to get rid of it.

Asked to comment on these statements, the Finance Minister declined, saying that he was not aware of what "was really said".

However, Dookeran added that, at the moment, the Government has no plans to introduce any new taxes to raise revenue, including taxing of rental income.

"We are not right now looking at those measures. Right now we are just trying to simplify the situation by repealing the act and reinstating the old act, and that is it at this point in time," he said.

In her column last Saturday's Express, former independent senator Dana Seetahal, SC, called on the Government to explain whether they will repeal the Valuations of Land (Amendment) Act 2009 when they repeal the Property Tax Act and revert to the Land and Building Tax and the Municipal Corporations Act for persons living in municipal corporations.

Because, she said, "If the latter remains law, then we will be in the same boat as before, or worst" as the changes in the system of valuation of property for tax purposes "will cause the taxes on property to fundamentally increase".