Property owners can breathe a sigh of relief as they would not have to worry about paying exorbitant taxes.
This assurance was given by the Minister of Finance Colm Imbert.
However, despite the minister’s assurance several property owners across the country expressed concerns over the re-introduction of the taxes while others welcome it openly, saying they see it as necessary and one of the major means to restore T&T’s economy.
The call for education forums on the topic was also made by some citizens, who described themselves as the layman and just wanted the privilege to attend a forum where they could have the return of the Property Tax explained to them in a way they could understand.
A resident from the Diego Martin West constituency, who only identified herself as Rachael, said she felt like people were being hit with tax after tax after tax.
“I think they should hold off on either one. They can’t hit us with bringing back items on the VAT list and now still on top of that want to bring back property tax.
“Right now it have no middle class. It’s either you rich or you poor and with all these taxes monsters are breeding. Ease up on the taxes,” the resident said.
Point Fortin resident Victor Sandy, 77, said: “I never went to school and I cannot read and write so I am left confused with all the talk about property tax.
“I need to know how it is going to affect me, good and bad. I need for someone to explain it to me in terms of how much of my pension money I have to take to pay the tax. I don’t want to hear one set of big words.”
Glencoe resident Bobby Adams, 58, said he didn’t see the return of the tax as bad.
He added: “There should be no beat up with the Property Tax because a small man like me will just have to pay a few hundred dollars in tax.”
Interviewed yesterday, Imbert said the Government would amend the Act favourably.
“We will amend the Act to ensure that payments of Property Tax, or land and building tax, in 2016, whatever you wish to call it, will be due and payable at the same amounts that these taxes were paid in 2009, on a property by property basis.
“In 2017 the percentages and method at which and by which the tax was applied will be adjusted to ensure that the tax is fair and reasonable,” he added.
Correcting what political leader of the Congress of the People (COP) Prakash Ramadhar said over the weekend, Imbert explained that by using the existing law, the tax on a $1 million property would be about $1,500 a year.
“Not $30,000 a year as incorrectly claimed by Opposition spokesmen. We intend to look at that $1,500 a year on a $1 million property to see if it reasonable and will adjust to suit, if need be,” he said.
Imbert pointed out a frequent mistake that people were making, which he said was that the Property Tax, as presently configured, was based on rental values not capital values.
“So a $1 million apartment or house, for example, would rent for about $4,500 per month, or $54,000 a year. The annual taxable value (ATV) is calculated by deducting ten per cent for voids, resulting in a taxable value of $48,600.
“The rate of three per cent for residential properties is then applied to this, resulting in an annual Property Tax of $1,458 and this is using the existing formula, which we intend to revisit.
“So all of this alarmist rhetoric from the other side is just wrong,” he added.