No backing down: Property tax stays

There is a sign of growing unrest in Trinidad and Tobago over the government's plan to substantially increase property tax.

But Finance Minister Karen Nunez-Tesheira made it clear Thursday that she isn't backing down on the controversial measure.

Nunez-Tesheira told the Trinidad Express the government is listening to the concerns that property owners have raised but at the same time she insisted that the new tax regime is necessary.

The proposed new property tax is scheduled to take effect on January 01, 2010, but owners would have a nine-month grace period.

The tax rate would be three per cent of rental value for residential current market prices, five per cent for commercial real estate and one per cent agricultural properties.

Nunez-Tesheria reminded the paper that under the legislation for the new system, people who are under financial hardship can apply for a waiver or a reduction in the taxes.

In Port of Spain, an angry group of citizens marched to protest the state of the economy, chanting, "No taxation before consultation."

The group, comprising members of the Communication Workers Union (CWU), the One Voice Committee, the Oilfields Workers' Trade Union and several other non-governmental organisations, complained that contrary to what the government is telling people very few citizens were consulted before the decision was taken to increase property taxes.

In central Trinidad, a small group of citizens passed a resolution to fight the property taxes and to unite with any other community with the same goal.

The Caroni Assembly of Villagers, which comprises politicians and civic leaders, is concerned with the quality of the valuations that will be made on properties and possible victimization.

A spokesperson told JYOTI the villagers are deeply concerned about the manner in which the property assessments would be done. He said he understands that the system would make assessments in blocks.

This means that a humble home in an upscale neighbourhood would have the same tax rate for all the properties, even though the real individual real estate values would vary from home to home.