Permit me the opportunity to highlight a few facts with respect to the new property tax which will be imposed in the not too distant future. Firstly and most importantly, salaries have not kept pace with the appreciation of properties in T&T. Therefore a house built ten years ago, at its present value, cannot be built today with the owner’s present salary. It’s just nigh impossible to build your own home at the present market rates.
To tax a home owner based on current value with a lagging salary is just shy of criminal.
Secondly, in my humble view, residential properties, used only for shelter and not profit, should carry a flat minimal rate of tax across the country. It is no fault of the home owner that land prices escalated, skilled workers became scarce with the advent of Cepep, causing a spike in the cost of labour and building materials skyrocketed. All these factors easily make a modest three bedroom flat into a million-dollar property, perhaps more. I must add that commercial properties should pay property tax as suggested. I therefore propose the following:
1. All residential structures, used strictly for shelter and not being rented out, should attract a flat rate of tax across the country.
2. Home owners who rent out their properties must acquire a license and be registered with a number. Failure to comply would carry heavy fines similar to driving under the influence.
3. Tenants must be given a receipt which can be used to claim up to 10 per cent of annual rent when filling out income tax; receipt must reflect registered number of home owner.
4. Legislation should be passed to include heavy fines for home owners who attempt to rent out their homes without a license and registration.
5. Random visits by Tax Wardens with powers to issue warnings and fines would ensure compliance.
With these proposed measures I can assure you that “a man’s home will remain his castle,” and citizens would not feel that they are being penalised for sacrificing to acquire their own homes through hard work, saving and doing without.
Andy Jangeesingh
