As the Government prepares to bring property tax legislation to Parliament soon, economist, Winston Dookeran, is issuing another warning that the new fiscal measures will add to the climate of political discontent in 2010. “Discontent, bubbling chaos, will be the order of the political environment in 2010. “It has to do with the entire economic programme of the Government, and its performance. “Included in this is the pernicious tax on property. This will fuel the bubbling chaos,” Dookeran, Congress of the People (COP) leader, said.

On an unusual note, the former Central Bank governor said the implementation of new property taxes was an “issue of philosophy” and was not economically necessary. “The Government already taxes our income and our consumption. Now they are taxing our savings. Property is really our expression of savings. “They are leaving people with no room to manoeuvre.” Dookeran said if the Government did not waste money, it would not have had to tax people’s savings. “They have resorted to taxing and borrowing as a way to get out of the crisis.”

Raymond: Timing poor for tax hike
Chartered surveyor, Afra Raymond, reiterated his earlier observation that when the timing is poor for imposing a tax, it gives people an opportunity to organise against the Government. “Already people are organising,” he noted. The People’s Democracy, comprising a number of labour and pressure groups, recently held a five-day protest against property taxation and other political ills. An ‘Axe the Tax’ campaign was supported by the COP and the Opposition United National Congress. In March 1990, Britain saw what was described as its worst riot in a century when 100,000 people marched through London in protest against the Poll Tax, a variation of T&T’s property tax. In the civic uprising, 113 people, 45 lawmen and 20 police horses were injured.

At last Thursday’s post-Cabinet briefing, Finance Minister Tesheira said property owners will begin receiving their new tax rates from March 31, 2010. She said legislation for the new tax regime will be brought to Parliament before the end of the current parliamentary term for its implementation from January 1, 2010. Despite the Finance Minister’s claims that Government will collect $325 million in property taxes for the year, Raymond continues to insist that the figure will exceed $1billion. Under the old land and property tax system, Government brings in between $120 and $130 million annually.

“The increase will be big,” Raymond said. “Some people will experience a decrease but most will have to pay more.” Raymond is critical of Tesheira’s disclosure, according to newspaper reports, that land taxes will be a “straight amount” of $10 an acre, “regardless of where the land is located.” The surveyor feels this is “no money” and fears it will contribute to more corruption. “We have no land management laws in place and a lot of agricultural land is changed to residential or commercial land but the owners continue to pay the old rate.

“If you own a 20-acre property, you pay $200 year in land taxes. “But if you cut up the land and sell it by the lot to make money and did not follow the proper procedure with Town & Country and the relevant authorities, you still pay the same $200 per year. “That’s how come over 2,000 properties are not recorded for taxation,” Raymond said. A land management policy is needed to oversee the changing of land from agricultural to residential use, he insisted. Owners of residential property will pay three per cent of the annual rental value of their properties while those with commercial properties will pay six per cent.

I chose this article because I thought the reference to the riots in Britain were relevant to the public view of the Poll tax.

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