Imbert: Govt may start collecting property tax in fiscal 2022

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Gail Alexander

Government may start collecting information for property tax purposes from industrial properties later in the year and some extraordinary revenue is ahead for T&T from unexpected higher natural gas prices.

This was indicated yesterday by Finance Minister Colm Imbert in the Senate, while piloting debate on the 2022 Budget.

Imbert said there’s been an “unbelievable” increase in the oil price due to the disruption in the supply chain and rebounding investment creating demand as the world recovered out of COVID-19.

He noted yesterday’s oil prices – between (US)$83 and $85 – and also that natural gas prices were up also. Imbert said nobody would have expected that a year ago when it was projected prices would remain in the (US)$40s and $50s.

Current developments now make for a bright picture for oil and also since natural gas prices doubled is last year.

Imbert said T&T can now earn from a basket of natural gas prices. He said arrangements done by the Prime Minister and his team – on revenue-sharing mechanisms – can be applied to gas concerning the Far East, Europe and US.

With the unprecedented prices in the Far East and Europe, “We’ll be getting some extraordinary revenue from oil and gas in this year.”

Imbert added 2022 revenue is estimated at $6 billion more than 2021 – most coming from the energy sector.

Projecting a strong economic recovery in 2022 from full economic reopening and improved energy sector conditions, he said three new revenue streams are also expected.

This includes from upcoming T&T Revenue Authority tax collection. Among this will be people outside of the “net” who currently aren’t paying, but will be paying their fair share of taxes ahead.

He cited the gaming and gambling industry valued in T&T at $16 billion and from which three per cent of their turnover- $500m – might be collected.

Imbert also cited the property tax which he said Government “believes” it can initiate at “some point” in fiscal 2022. He noted the current Valuation Division exercise to collect information on properties to populate the property rolls. he tax can be triggered when 50 per cent of the rolls are populated. Information on this will pertain to properties’ description- size, location, age.

The current exercise includes residential, agricultural and commercial properties. Imbert said industrial isn’t being done yet. But it “may” come after and “maybe” later in the year information gathering on industrial properties might start

Giving example he said residential properties with rental value of $3,000 would have to pay tax of $1,000 annually.

Also speaking on COVID-19, Imbert said T&T had crossed the threshold of 40 percent of population fully vaccinated. As of last Friday the figure for those partially T&T had caught up with and is now ahead of other regional countries who were ahead, and will continue vaccinating in 2022. Citing vaccine stock in hand and further supplies if required he said T&T is in an extremely good place on vaccine availability and capacity, “Our issue now is dealing with vaccine hesitancy,” Imbert added.

Imbert noted that since the US announced it will accept all WHO approved vaccines as essential prerequisite to travel to the US, there’s been an uptick in vaccinations and “one hopes that will continue”.

He said the European Union is still working on its vaccine passport regime. The UK has relaxed its requirements for T&T and according to what the UK High Commissioner was saying, there may also be further relaxations as things go along.

The Budget is in the context of reopening, he indicated but that depends on the success of the vaccination programme and reaching the target of 70 per cent of the population as soon as possible.