Poor to get relief from residential property tax

The government of Trinidad and Tobago promised Wednesday that property owners on a fixed income will receive a waiver or a reduction in the proposed increased property taxes if they prove that they cannot afford to pay the tax.

Finance Minister Karen Nunez-Tesheira gave the assurance to the House of Representative while winding up the debate on the 2009/ 2010 Budget, which later passed easily with the government's strong majority.

The tax is three per cent of the rentable value of residential properties. Critics have said it is oppressive and an attack on the poor and those who have to rely on meagre pensions in order to survive.

The minister said that's simply not so. "We go beyond the person who is actually living in the house, and in that circumstance, you know, even on the transfer, even on inheritance, even if the person who inherits it finds themselves in that same situation, this Government is prepared either to suspend or reduce the level of tax to that person.

"What I really want to address is the propaganda that says that this Government does not care about people who are on fixed incomes...the current land and building taxes does not make provision for a person's financial position," she said.

The minister said the new legislation "is going to give relief for those who find themselves in a fixed-income situation and because of their financial hardship".

She added, "It will have regard to the deferment of the tax or reduction of the tax where we are satisfied...having regard to the impoverished condition of the owner and his inability to improve his financial position significantly by reason of age, employment or other special circumstances, that undue hardship to that owner would otherwise ensue."

She said this is because her government is a caring one, not a callous one, which is how one commentator described it last week.

Nunez-Tesheira reiterated that the residential property taxes will be based on rental value and not capital value, and the flat percentage of three per cent will ensure equity throughout the country.