Deputy political leader of the United National Congress Suruj Rambachan says poor and middle class families will face the brunt of taxes if the People’s National Movement (PNM) establishes a Revenue Authority.
Rambachan was speaking yesterday at the commissioning of the $9 million Endeavour Roundabout in Chaguanas.
Rambachan said the PNM, in presenting its manifesto on August 20, promised to establish a new authority once elected in office. He said, however, this will only bring hardships to poor and middle class citizens.
The Works and Infrastructure Minister said the establishment of an authority meant that property tax will return under the PNM.
“You and I know that a simple house now will cost approximately $2,500 a year in property tax. So, there is a brutality that is going to be imposed on middle class families and especially the poor in Trinidad.”
Rambachan said despite falling oil and gas prices, the Government never increased taxes, cut jobs or social programmes. He said they managed the economy on an even keel.
He also touched on the PNM’s proposal to reduce VAT by 2.5 per cent.
“You cannot give away 2.5 per cent in VAT not knowing how you are going to get back the 2.5 per cent in income with falling oil and gas prices.”
He said what the PNM also intended to do was increase the base of goods that are vatable. “So, what is not vatable now will become vatable because what they have not told the population in their budget is that they are going to increase VAT collection from $8 billion to $10 billion.”
Rambachan said the PNM will also revise subsidies on fuel prices.
The subsidy on a litre of diesoline is about $4.75, Rambachan said.
“They (PNM) have not said how much they are going to increase it by.”