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INSTITUTE OF SURVEYORS
The Professional Centre, 11-13, Fitzblackman Drive, Woodbrook,
Port of Spain, Republic of Trinidad & Tobago
Telephone No. 468 3356
21st December 2009
Ms. Karen Nunez-Tesheira MP,
Minister of Finance,
Eric Williams Financial Complex,
Brian Lara Promenade,
Port-of-Spain
Honourable Minister,
Property Tax Bill 2009
We are writing to place on record our comments on this important new
legislation.
Our concerns are listed for ease of reference -
1. Lack of Consultation – We have not
been consulted on these important measures and we would suggest that a better
way to approach this process would have been for the government to seek informed
comment from the relevant professional bodies and civic society organisations.
2. San Fernando – One of the key points
you have advanced in this matter is that all the properties in the City of San
Fernando were re-assessed in 2004. You have also repeatedly made the point
that, in the case of properties in that City, these proposals will reduce the
rates payable. We are questioning whether either of those assertions is
correct.
3. Poor fundamental information – Policy
created without consultation and on the basis of poor fundamental information,
is likely to be as flawed as the existing system which you are seeking to
reform. Just to take a single example, there is widespread confusion, even in
official circles, as to the total number of rateable properties (hereditaments)
in the country. If we do not know how many rateable hereditaments there are, it
is impossible to either estimate how many are missing or form conclusions as to
the impact of their absence. In light of the low quality of the information
used by your Ministry in this process, one is entitled to wonder 'How is it
possible to make reasonable predictions as to the time-scale, cost or impact of
these proposals?'.
4. Information Systems – One of the basic
ingredients for this process would have to be a modern, transparent and
cross-linked database to comprise a national Land Information System or
Geographic Information System (LIS or GIS). The absence of such a system is the
only way we could have arrived at a stage with so many properties missing from
our rolls of assessments. That unsatisfactory state of affairs can only be
overcome if the holders of mapping and survey information are obliged to share
their data with the builders of the LIS/GIS. That would include the significant
data held by WASA, TTEC, TSTT, Ministry of National Security, TTPost and so on.
Such a system would have widespread benefits in terms of each of those entities
and wider potential benefits to the citizenry in terms of the possibility of a
better level of service delivery. Apart from the wider benefits as outlined, a
national Land Information System/Geographic Information System must be at the
very centre of any meaningful reform or review of property taxation.
5. Why Change the Law? – No rationale has
ever been advanced for the process we are now seeing. Why should this revised
property valuation have required any legislation at all? What is the need for new laws? Have we identified the
shortcomings in the old law/s, as distinguished from poor administrative
arrangements and/or performance? If those shortcomings have not been
identified, there is a weak case for new laws.
6. Local
Government - The proposals that all such revenue is to be paid directly to
Central Government will directly and adversely affect the degree of financial
independence enjoyed by local government. When one examines the international
picture, these property taxes are usually paid to local authorities for
provision of services to local communities. The present proposals are being
advanced without any evidence, or even attempt to persuade, as to the underlying
rationale for the centralisation. All this at the very moment when Local
Government reform is being proposed to bring about more modern and efficient
operations in that field. We urge you to re-consider. 7. The overall
case for Property Tax – If such a case is to be made by government, it would
need to contain elements such as fairness: cost of implementation and
administration: present compliance levels, with compliance targets for the new
system. It would also be instructive to compare the performance of property tax
with that of other taxes.
8. Corruption
and Tax Evasion – The existing system contains ample examples of the ways in
which certain taxpayers can evade their obligations. It is our view that the
one of the best ways to minimise this kind of behaviour is by creating the
national LIS/GIS database as outlined earlier, with maximum transparency. The
database should be open to interrogation as to property details (land area,
building area and facilities), Annual Taxable Value, Exemptions enjoyed with
justification, ownership. If any one can check the database there is a reduced
likelihood of these practices being continued.We trust that you give due
consideration to our comments.
Yours sincerely.….......................................
Afra Raymond
President
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