The tax, which was proposed by the previous Manning PNM administration and killed by the PP government, was a very emotional issue in the 2010 general election campaign.
The People's Partnership government pledged to kill it and kept the promise.
In Monday's budget Finance Minister Larry Howai spoke about a tax regime and the PM explained, as did the minister, that it would be based on the old land and building taxes before 2010.
"I want to make it very clear that my Government will not introduce any property tax, there will be no property tax," Persad-Bissessar declared.
She explained that the budget addressed the issue of industrial taxes for corporations but the tax won't apply to residential and agricultural lands.
"In fact, I had given instructions for a Bill to be drafted that will clearly take the land and building taxes as it was prior to 2010 before the law that was passed by the PNM for the property tax,” she said.
"I want to make it very clear that my Government will not introduce any property tax, there will be no property tax," Persad-Bissessar declared.
She explained that the budget addressed the issue of industrial taxes for corporations but the tax won't apply to residential and agricultural lands.
"In fact, I had given instructions for a Bill to be drafted that will clearly take the land and building taxes as it was prior to 2010 before the law that was passed by the PNM for the property tax,” she said.
What Howai stated in his budget speech:
"Mr. Speaker, a land and building tax regime is a key pillar in all modern tax systems. Recurrent land and building taxes meet all the conditions of a good and fair tax.
The backbone of a successful land and building tax is the proper valuation
of properties within a transparent framework. This will require the property rolls being brought up-to- date.
of properties within a transparent framework. This will require the property rolls being brought up-to- date.
I propose to phase in these taxes over the period 2014 to 2017 during which time the properties will be valued and consultations will be held with all stakeholders.
In phase 1 and effective immediately, we shall commence valuations of all industrial land, including plant and machinery, whether housed or unhoused with a view to implement this tax by July 1, 2014.
In phase 2, we will impose a tax on commercial properties and in phase 3, we will impose a tax on agricultural lands and on residential properties with a
deductible allowance to provide relief to certain agricultural land owners and low-income homeowners."
deductible allowance to provide relief to certain agricultural land owners and low-income homeowners."
Read the full budget speech:
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