A government minister on Saturday suggested that criticisms of the proposed property tax legislation are based on ignorance rather than on sound economic calculations.Mariano Browne, Minister in the Ministry of Finance Mariano Browne, told reporters on Saturday the responses so far have been "ignorant."
Speaking after a general council meeting of the People's National Movement (PNM), Browne admitted that the public does not have enough information about the tax regime.
“If you pay $10,000 a year in rent, the rateable value is 90 per cent which is $9,000 and three per cent of that is $270," Browne explained.
He said the finance minister has merely alerted the public about the Government's intentions to streamline the taxation system, adding that legislation to deal with it still has to go before Parliament for debate.
"There will be an opportunity for review, further communication, when the legislation is brought to Parliament. The idea is that we would certainly like to have it in position by January 1, 2010 because it is a lot of work between now and the end of the year to get it into position," Browne said.
He suggested that people are getting emotional about the issue and behaving as if the government will immediately begin taxing property owners.
He made that same point in the Senate on Friday. "People are not going to get up and pay x, y and z tomorrow," Browne said.
Browne said although the budget has passed, the tax issue is one that has to go back to parliament as a separate piece of legislation.
"In terms of a legislative agenda, this legislation would have to be brought to Parliament and debated. That is why it is not listed as a fiscal device. It is not listed as a fiscal measure. It is listed as part of a reform measure," Browne told the senate on Friday.
Browne suggested that the "reason why everybody is getting jumpy over" the property tax reform is because "the intention is to move to a metering situation" so as to separate water rates from property values.
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