Rowley wants PM to explain tax proposals

Keith Rowley believes the Prime Minister is not being honest in her statements about lower property taxes and the opposition leader has suggested that people should not expect lower land and building taxes.

"You mark my words. The same thing that happen with the pension will happen with the property tax," Rowley told the Trinidad Express. "But I will await the budget to see what it says," he added.

Rowley was commenting to the Express on Prime Minister Kamla Persad-Bissessar's statement on Sunday that the land and building tax would be reduced and there would be a moratorium on the payment of these taxes for the 2010 fiscal year.

Persad-Bissessar also made it clear that contrary to what Rolwey has said in the past, the People's partnership government never promised old age pensions at age 60.

Read the story: No new taxes: PM Kamla keeps her campaign promise

Rowley told the paper he is still waiting for the promised repeal of the Property Tax Act, which was a major campaign promise.

And he was skeptical about the PM's announcement. "The lower rate of land and building taxes is to lower to what?" he asked.

He told the paper Persad-Bissessar didn't say whether the new government would accept the valuations done during the PNM administration or whether there would be new proper assessments.

He called on the Prime Minister to explain the formula for arriving at the tax. He also wanted more details on the tax moratorium, especially since the government has been saying it is short of money.

He suggested it would be a bad idea to lose $100 million in revenues from the 2010 taxes. "So the more they try to become smart, the more they are playing the fool, with foolishness and all because they would not speak the truth," he told the paper.

"So don't be surprised if they come with another argument saying we didn't promise so and so...They are just not to be trusted," he said.

"Given the position that the Prime Minister has taken and is taking with respect to the commitment on old age pension, where truth and commitment seem to be in short supply, I will wait to see exactly what is put in the budget.

"I would not be surprised if they take the same approach to property tax as they took with the old age pension—which is to attempt to hoodwink the population outside of an election campaign.

"It is only from that understanding that one can appreciate what the Prime Minister said about the pension and what (is) this very confusing statement about the property tax."

Former Finance Minister Karen Nunez-Tesheira told the Express the PNM government had already reduced the rate of the taxes on property to three per cent across the board as part of its Property Tax legislation.

She doubts the new government will really remove the property tax as promised.

"Whether they call it land, building or property tax, it is a tax on property and there is a relationship between the tax and the valuation of the property...they did not understand the responsibility of governance," she said.