Gopee-Scoon: Industrial, commercial property tax off the table for now

MINISTER of Trade Paula Gopee-Scoon has said implementing property tax on business is not a consideration of the government for the time being.

She made the statement while answering questions from the media after a tour of the Blue Waters factory on Orange Grove Road in Tacarigua.

The company won the title Manufacturer of the Year Large 2023 at the Trinidad and Tobago Manufacturers Association's awards ceremony in November.

“I can give you the position of the government, that it is not on the table right now.

“When you look at the last budget, there is no mention of an introduction of the property tax on business.”

She said while its implementation might be considered some time in the future, consultations with the private sector would be held at that time.

In the 2021 budget presentation, Minister of Finance Colm Imbert expressed the government’s plans to begin collecting property tax. Imbert said government would start with residential properties, and commercial, industrial and agricultural properties would follow in that order.

The tax is payable on a percentage of the annual taxable value (ATV) of the land owned. Schedule one of the Property Tax Act breaks down the tax rates for each section, with residential land being taxed at two per cent of the ATV and commercial land at six per cent of the ATV.

Industrial land is divided into two categories – industrial land with plant and machinery housed in the building would be taxed at a rate of six per cent; and plant and machinery not housed in a building at three per cent of the ATV.

Agricultural land will be taxed at one per cent of ATV.

Blue Waters on forex challenges: We manage

Owner of Blue Waters Dominic Hadeed said while the company was still seeing some challenges accessing foreign exchange (forex), it is doing well with the assistance of Eximbank, local commercial banks and the efforts of the business to earn its own forex.

“It’s as my uncle used to say, a hair from here and a hair from there would make a beard.

“A little from Eximbank, a little from local banks, a little from export and a little from buying local… we manage. I wouldn’t say that it is smooth sailing, but we manage.”

Hadeed said while the company was getting assistance from financial institutions, it was also growing sales locally and growing its exports.

“I think when the banks are seeing that you are making an effort, I think everyone will work together, because they are hoping that if they give you some support in the short run, in the long run you will be less reliant, or not reliant at all. That is what we are trying to do.”