By Clint Chan Tack Wednesday, September 23 2009

MINISTER in the Ministry of Finance, Mariano Browne, and Senate Minority Leader, Wade Mark, crossed swords in the Senate yesterday over the controversial property tax system in the 2010 Budget, which Government plans to implement on January 1, 2010.

As he began the Budget debate in the Senate, Browne took note of the criticisms against the Government on this issue, and sought to assure the public they had nothing to fear from the new system.

He explained that Government was developing a property tax information system that will use modern technology to assess all properties in the country, and collect taxes through a harmonised tax regime.

Reiterating that the objective of the new system was to ensure equity across the board, Browne said, “Objections, appeals and queries by citizens in all assessment and valuation matters will be facilitated to ensure that citizens have an avenue for redress.”

Disclosing that legislation to give effect to the system will be brought to Parliament this year, Browne said, “The legislation will allow for total, or partial exemption from the tax, for any period, or its deferment in any case where it is satisfied that the owner, by reason of age, impaired health, or other special circumstances, would suffer undue hardship.”

When she presented the Budget in the House of Representatives on September 7, Finance Minister Karen Nunez-Tesheira did not make this statement as part of her presentation.

However Browne’s assurances did not satisfy Mark who slammed the new property tax as “a direct hit” on the middle class and the dreams of citizens to own a home.

“The Government is creating a nation of tenants! The sting is in the tail! This will lead to the segregation of communities and the creation of ghettos!” he said.

Claiming the middle class was taking “sniper fire” from the Government from measures in the 2009 Budget, Mark slammed the new budget as “a frontal assault” on the middle class which was already burdened with increasing electricity rates, water rates, and high food prices. Mark said the property tax was in contradiction with the objectives of Government’s accelerated housing programme and efforts to encourage more citizens to become homeowners.

“The Government is giving with one hand and taking with the other. This is where the UNC parts company. The battle lines have been drawn!” he declared.

Claiming the property tax and higher taxes on tobacco and alcohol were an attempt by Government to find revenues to compensate for its wastage of the country’s natural gas boom.

Mark said a new UNC government would reverse or abolish these taxes.

On property tax, Mark called upon Government to improve its revenue collection and increase enforcement regarding persons who do not pay tax. “Collect, do not add or increase,” he stated.