By Clint Chan Tack Tuesday, September 29 2009

GOVERNMENT was yesterday cautioned about implementing property tax legislation which could infringe upon the constitutional rights of the people of Trinidad and Tobago.

This was the advice given by constitutional expert and former Police Service Commission chairman Kenneth Lalla SC.

He cited that Section 4(a) of the Constitution acknowledges the “right of the individual to life, liberty, security of the person and enjoyment of property, and the right not to be deprived thereof except by due process of law.”

While Government has not brought the legislation to Parliament as yet, Lalla advised Government to ensure that the fundamental rights of citizens to “enjoyment of property” is not infringed by it. He explained that if new tax legislation, or amendments to existing legislation, either infringe, or are perceived to violate Section 4 (a) of the Constitution, the bill will require a special majority to pass in both the Senate and the House of Representatives.

Should this scenario take place, Government may be able to pass the legislation in the House but would require support from the Opposition or Independent senators to pass it in the Senate. The UNC and several Independent senators have expressed opposition to the new property tax measure.

Describing the property tax issue as “very delicate,” Lalla said Government should take cognisance of the views of the public, as it develops this legislation, and not treat it in a trivial manner.

Speaking with reporters following the opening of a workshop at the Arthur Lok Jack School of Business in Mt Hope, Minister in the Ministry of Finance Mariano Browne said: “I am not clear that they will require a special majority. I think it is a simple majority, but I am not certain. I could not specifically speak to that.”

Reiterating that Government plans to bring property tax legislation to Parliament before December 31 so the new system could be implemented from January 1, 2010, Browne said: “I want to make the point that a lot of comments have been made with respect to the property taxation without the benefit of really examining what the facts are.”

Explaining that property tax is an existing measure, the minister said the calculation of property taxes on the basis of 2004 valuation has not caused any of the difficulties which some commentators predicted.

“All Government has to do at this stage, in as much as the property tax is already on the books, would be simply to upgrade the valuations to 2008, 2009 valuations. The applicable rate of tax would be ten percent or 7.5 percent.”

It is in recognition of the fact that the jump from old valuations to modern day valuations on annual rateable values would cause difficulty that the Government proposes to introduce, or amend the legislation to reduce the tax to three percent,” he said.

Browne added there were at least three municipal and/or regional corporations in the country

“in which the new valuations are in position, and it has not caused any dire consequences.”