LET me firstly give marks to the Cabinet on its tenacity and resolution to implement the dreaded property tax.
At the same, time I must condemn the Opposition for its whimper on this matter, having failed to force the hand of Government or educate the population on (a) appeal processes or (b) edification on the methodology for determining the annual ‘rentable’ value.
It would seem that it expects that the disenchantment of the population would redound to its benefit at the polls, but even that can’t bring the UNC (United National Congress) back. The Finance Minister could pull out a rate decrease just before election and shout out: ‘What a good boy am I.’ So we will be stuck with the new tax burden and the same legislators.
This tax is based on the false assumption that the standard and quality of your home or yard is commensurate with your income. It inexplicably penalises those who take care and pride in the upkeep and beautification of their abodes.
A lot of my friends subscribe to the view that we must pay property taxes as in other countries. We last paid property taxes 14 years ago and life went on.
I was hoping the weekly thumping of chests by State officials about the Dragon gas deal would have obviated the need for extra revenue and therefore cause a recall of the tax or even a reduction of it.
The Finance Minister is now disingenuously touting that the rate is 2.7% instead of 3%. How callous of him! Note also all the taxes we pay from Customs and Excise, VAT, PAYE, stamp duties on property purchases or transfers, health surcharge, licensing fees, etc.
The State can update assessment rolls via a nominal property tax as previously done, but it should not unfairly overburden the middle class so inhumanely. It further adds another layer of bureaucratic and administrative processes, costing the country millions of unproductive man hours.
It also is baffling why HDC houses and commercial and industrial holdings are exempt. The Opposition failed to pressure the Cabinet again. People feel these entities should have been taxed first, especially Point Lisas, which would have resulted in at least a threefold revenue enhancement, thereby enabling a drop in the 3% rate.
One must also wonder whether the valuation exercises consider the following features which directly impact the rental value of a home in any particular area: the level of crime proximity of “drug blocks” deteriorating and pothole- ridden roads frequency of water supply law enforcement, re: roadway derelicts, nuisances, and loitering drainage or flood suscep- tibility environmental or yard con- ditions
air-conditioning functionality or removal.
I would like to know how the tax is adjusted if your home suffers damage by flood, earthquake or fire.
I am also concerned about potential tremendous misappropriation and wastage of our sacrificed earnings from this tax. Already, there is clamouring for additional revenue to be redirected to bigger Carnival celebrations, for example, despite the several advisories on safety issues flying out from North America. More largesse causes burdens of patronage and social make-work programmes which would cause further criminal agitation in our towns and villages by gangs.
I have indicated before that the backlash from the multiplier effect of this tax will send the prices of services to much higher levels for the man in the street. The disposable income of the middle class could drop by an average of 10%, causing a falling away of demand for maintenance and leisure activity nationwide.
Tradesmen, professionals, vendors et al live in homes where additional funds must now be raked in to pay the tax. This means higher prices. So a lot of us on fixed incomes will be hit by a double whammy.
I have done my duty to my country, so those in Cabinet can’t claim they could not have foreseen the calamity ahead.
Alton Daniel St Joseph
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