house talks: Finance Minister Karen Nunez-Tesheira, left, during yesterday's 2009/2010 Budget debate at the Red House, Port of Spain. Looking on is Prime Minister
Patrick Manning. -Photos: ANISTO ALVES
Property owners on a fixed income will receive a waiver or a reduction in the proposed increased property taxes once they can prove to the Board of Inland Revenue or its replacement, the Trinidad and Tobago Revenue Authority, they are in an impoverished financial position.
Finance Minister Karen Nunez-Tesheira made the announcement while winding up the House of Representatives’ debate on the 2009/ 2010 Budget at the Red House, Port of Spain, yesterday as she noted that the waiver or reduction in the increased property taxes was not just limited to existing homeowners in financial hardship.
’We go beyond the person who is actually living in the house, and in that circumstance, you know, even on the transfer, even on inheritance, even if the person who inherits it finds themselves in that same situation, this Government is prepared either to suspend or reduce the level of tax to that person,’ Nunez-Tesheira said.
The property taxes increase is contained in the 2009/2010 Budget, which was passed with amendments by the House of Representatives at around 2 p.m. yesterday.
Nunez-Tesheira sought to allay fears among many commercial, industrial, agricultural and residential property owners about the impact the increase in property taxes will have on their finances, at a time when the country is still experiencing the impact of the global economic downturn.
’What I really want to address is the propaganda that says that this Government does not care about people who are on fixed incomes. I hope they are listening, Mr Speaker, and I want them to hear that the current land and building taxes does not make provision for a person’s financial position,’ she said.
The minister added that the relevant section of the Land and Building Taxes Act only provides relief if the structure of a building suffers from grievous damage or an act of God while the new legislation ’is going to give relief for those who find themselves in a fixed-income situation and because of their financial hardship’.
’It will have regard to the deferment of the tax or reduction of the tax where we are satisfied, that is the Inland Revenue, the authority is satisfied, having regard to the impoverished condition of the owner and his inability to improve his financial position significantly by reason of age, employment or other special circumstances, that undue hardship to that owner would otherwise ensue,’ Nunez-Tesheira said as she quoted from the new legislation.
She said this was the sign of a caring Government and not, in the words of one caller to a post-budget forum last week, a callous one.
Nunez-Tesheira reiterated her explanation in the budget presentation that the residential property taxes will be based on rental value and not capital value, and the flat percentage of three per cent will ensure equity throughout the country in this regard.
Can someone tell me whether old age pensioners who only receive a mere pittance of a pension and who own a home that her dead husband left for have to pay this exorbitant yearly tax?
How can a pensioner prove his "impoverished condition"? By humiliating himself? Does the minister want to strip these people of the little dignity they have left?
That talk about people paying 1948 taxes is pure misinformation. In my own case, my house was built around 1970 and the valuation was carried out and an assessment of land & building taxes was established. Then in the 1980s the valuation dep't which was doing new assessments on properties had a look at the outside as the home could not be assessed due to my absence. Next thing my taxes were increased by more than 1000% and then based on this WASA accessed the records & levied a hefty increase in water rates. And how many thousands of houses have been built in the last 30 or 40 years? And were they valued at 1948 prices?
While land taxes used to be 24 cents per acre in 1948, years later years this was increased to something like $20. per acre, if I remember rightly.
It took so long for our GOVERNMENT to realize the value of AGRICULTURE,Now they are placing another burden on farmers,yet they expect sustainable agriculture,to reduce our domestic FOOD BILLS ??. Every member of Parliament,should try his/her hand at FARMING.Only then they will understand the trial and tribulations of FARMING.There should be NO TAX on land for FARMING.
I believe the property tax is what all developing countries are also doing but the money that is collected is is used to better conditions in the environment where you are living, I am hoping that this increase in property tax will allow for better conditions in my neighbourhood, like roads, drainage, water and patrol by police. presantly in Rio claro the powers that be is claiming that they dont have the money to be able to do all the things needed to be done in the area but the co-operation is continually buying new exceutive vehicles for people to to enjoy the money that was allocated to doing better for the community, I fear that this will contineue to be the case when they have this increase in the revenue as a result of the property taxes.
What nobody is talking about is the Industrial Property Tax. This is the is the part that will drive prices up and put small people out of business. Its only after we cry that you say you care. What happen before that, did you ever hear?
When the Industrial tax kicks in, this is what will happen. The price of Milk, Flour, Bread, Crix and Corn Curls will go up, as they have to pay 6% on the building and another 6% on top of that for the Machinery that they operate.
How come none of the big brain business men figure this out as yet? Is because they do not care. They will just pass on whatever extra that they have to pay on to you. So add that to your house tax and see what you have left. Nothing. The Government now has you exactly where they want you. Poor and waiting, begging for the next hand out.
Time for old people to get up and take to the road.
St James
Your government squandered the people's money and now you are punishing the people for your squander-mania.Its just goes to show we never got anything free this government,you give with one hand and take back with the other.We are paying back for the street lamps,food cards,Cdap old age grants etc.You shameless government.
Those "low income" citizens would obviously be Manning's loyalists, who are given housing in those low project housing schemes! So again is all for Manning and his people, not the rest of the hard working honest communitties
If you were a caring government then you would stop wasting OUR money (not yours), on wallet busting, frivolous projects and stop raiseing our taxes to pay for your whims and fancies. Stop building castles for yourselves while raising property taxes on us. If you really care about us, then DO SOMETHING ABOUT CRIME!!! Stop paying us lip services and offering promises that never materialize.
If the government want to introduce Property taxes in line with first world nations, then they need to also introduce some of the rules that are applied in these countries. For example, there are reductions at different levels for properties with a single occupant, and those that are unoccupied as well as an income check. In addition with rental property in Europe the person living in the property is responsible for the tax as opposed to the owner. This is in keeping with the fact that the tax is used to fund local services and the beneficiary of the local services is the occupier.
Whaaaaaaaaaaaaaatttttttttttttttt is this I hearing here, YOU givin we a bligh on the taxes, once YOU can prove that we poor. well yes trinidad we reach.
This is admission of a guilty conscience, that you know that you are being unfair with imposing these outrageoulsy high taxes. Thanks ehh Tesheira, thanks for being so considerate...
I wonder who is the person coming up with these bright ideas and then givin them to that poor lady to sell for them?
J
We all work on a fixed income, maybe you don't. This is just a recipe for "bobol" and subjectivity. Who will have the final say, who will be the one to determine the beneficiaries of the "ease-up". Another waste of time and lack of foresight. What about those young people who just purchased their homes and trying to make ends meet? What is their motivation to achieve? Maybe crime really pays!!!! What do you think Karen?
If only we had a strong opposition, Manning and his government could not have gotten away with treating half the population with so much spite. A standard one child could easily tell you who are the people that will be force to pay this new tax and who are the people that would benefit by not paying this tax.
I can understand that private property tax hikes were not reformed or increased since 1948, according to your facts, and I agree it should be brought up to date in keeping with current trends, but Jesus Christ, to say in September2009, that from 1st march 2010, the increase will jump from $300 to $3,000, is almost as ridiculous as bandits coming to your house and "sticking you up for money, and if you don’t have it they are beating up on you. It's not much different, only in your case, you are hiding behind diplomacy. I could see a jump from $300 to $900, but $3000!!!!, who and you, and what mathematical calculations and strategy were used to come up with that antisocial amount? That is as closest to high way robbery as you can get. Then when you get that money, if you spend it on the Water woes, or the Hospital dilemma, implementing good strategies for crime infested areas, I can say well ok, she is sticking me up, but at lease she is doing something "Intelligent” with the “Loot”. But we all know in the end since there are no checks and balances on Tax Payers Revenue, the money will be used to once again buy things that has nothing whatsoever to do with the current "Epidemics" that are plaguing our society today. So I guess the morale of this story is, since we never had a choice in forking out the money, we don’t have a choice in deciding what is done with it. Democracy at its best, according to your standards. Good Day!! Lloyd C. Johnson US Army Retired,
As a senior financial analyst living abroad, all this Minister is doing in this budget, is proposing some goodies, as was done in the past PNM budgets, which was never delivered. While implementing for sure, a massive tax grab, especially from the most volatile struggling middle class citizens of the nation
This budget will definitely result in the poor becoming poorer. In tough economic times, it the responsibility of the finance minister to introduce incentives, to help get the economy rolling again, not digging deeper into it's citizens' pockets. Most nations around the world also borrowed money just like the PNM, difference is, the other governments did not introduce substantial taxes. The PNM government really missed the boat on this budget, in terms of what priorities should come first, if they expect to achieve their Vision 2020 - Economist, Canada
Does anyone realize that WASA rates will go up also, because of the new land taxes? Check that out. Lord help us, what a mess we middle income earners are in next year.
If we, as Trinidadians and homeowners (those of us who are) stand up against this blatant display of robbery and refuse to pay the increased taxes, can the Government arrest or sue that collective group? I believe that the Govt needs to take some of that $244M for the PM's house and invest it into some worthy necessities instead of making the public pay... who says the Government cares? Please Madam Minister, stop trying to fool yourself!
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