BUSINESS: Phillips can’t say if property taxes will go up again

Minister of Finance and Planning Dr Peter Phillips cannot definitively say whether there will be further increases in property taxes following the completion of a revaluation exercise now being carried out by the National Land Agency (NLA).



However, he said some reviews would be done, although not with the intention of increasing the liabilities of taxpayers.



"There has been a revaluation process that is on the way, but which was not sufficiently completed in March so we took the decision to raise the rates,” Phillip said.



“When that process is complete, what we will have to do then is review the rates in relation to the new values which we do not now know, but it is not intended to use the revaluation as a means of further raising the liabilities of the taxpayers," he told a post budget press conference at the Ministry’s offices in Kingston this morning.



Pressed by Claudette Crooks, managing director of financial outfit Money Masters Limited for a definite answer about any further increase in property taxes, the Minister said he could not say.



As part of the revenue measure the Minister in February adjusted the property tax rates resulting in massive increases to yield some J$3.4 billion in revenue. That adjustment took effect on April 1.



With the adjustment, all properties with an unimproved value of up to J$100,000 will be charged a flat rate of J$1,000.



Properties with values exceeding J$100,000 up to J$1 million will attract an additional 1.5 per cent.



Those with values exceeding J$1 million will attract an additional two per cent.

The NLA is now carrying out a revaluation of lands, an exercise expected to be completed in September.



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