Finance Minister Larry Howai has said that Opposition People’s National Movement (PNM) Leader, Dr Keith Rowley is completely wrong in his claim the People’s Partnership was implementing a property tax regime originally developed by the previous Government.
Howai was responding to claims Rowley made at Thursday’s PNM manifesto launch.
But Howai in a statement issued yesterday stated: “It must be said clearly—the people of T&T can completely dismiss this claim as utterly false. No property tax has been implemented or is being planned for next year by the Kamla Persad-Bissessar administration.”
“I can state categorically that Cabinet has not considered this matter nor has the matter been brought to Cabinet for consideration at any time in the last two years. Any such claim is completely without basis and must be considered a total fabrication intended to create fear and anxiety.”
The Minister stated: “In January of this year, when the Prime Minister and Government moved to make spending adjustments in light of falling energy prices globally, a commitment was made and we intend to keep that commitment, that the most vulnerable will not bear the burden of adjustments.”
“Following the address to the nation on 8th January, we then met with energy sector stakeholders as well as larger commercial interests in consultations on how we can reform our tax regime. During those discussions, preliminary consultations were held on a possible Industrial Land Tax for the very large companies, primarily in the energy sector.”
Howai added, “I would emphasise that I have consulted with the business community on the sequencing of an Industrial Land Tax, and subsequently land and building taxes on residential and commercial properties. The feedback which I have received are (i) That we should consider carefully the tax burden on individuals and businesses and the effect that it can have on new investment, and (ii) That the process of implementation will be long and drawn out and will not provide immediate cash flow benefit to the Treasury. As a consequence the matter has not gone forward.”
The Minister said that consultations has always and will always form the basis of any major reforms that take place, adding that “consultation has been the hallmark of the Government.”
Further dismissing claims by Rowley, Howai said: “While I understand that in a political campaign, some people get carried away and the lines between truth and fiction become blurred, making what appears to be deliberately distorted statements that create panic among citizens and our business community is irresponsible and will ultimately hurt people.”