Houses for sale in Trinidad and Tobago still subject to controversial tax law

Photo credit: Jayme-Antonio

Houses for sale in Trinidad and Tobago are still subject to a controversial tax law introduced in 2009, despite the government’s recent claims that it would be reversed.

The Property Tax Act was introduced by the previous government and required a 3 per cent tax on homes, a 5 per cent tax on commercial real estate and 6 per cent on industrial buildings. When it was first introduced two years ago, it was greeted by public riots.

Earlier this year, Prime Minister Kamla Persad-Bissessar denied claims that the tax would be increased, announcing that the Act would instead be repealed. But there are reports that the government have backtracked on the plans to revoke the law, even as the country’s Finance Minister told Trinidad and Tobago’s Newsday that it “would be repealed in the new parliamentary session”.

For now, houses for sale in Trinidad are still subject to the law, although new legislation is expected to be introduced in September.

Collection of the controversial property tax was suspended in January 2010, leading to an estimated loss of $285m over the past 18 months. “No decision is thought to have been made on whether the legislation will apply retroactively to January 2010,” commented Tax-News.com.