SVG

Opposition Leader notes ‘multiplier effect’ of new property tax

Opposition Leader Arnhim Eustace (File photo).

KINGSTOWN, St. Vincent – The increase in property tax here is likely to have a “multiplier effect” on citizens’ spending power, according to Opposition Leader Arnhim Eustace.

Owners of properties worth more than EC$25,000 on the market will this year begin paying 0.08 per cent of the value of the property in taxes, an increase of about 15 per cent.

“It is going to have its additional multiplier effect, as economists like to call it. … All it really means is that it is going to have more impact that you expect initially,” Eustace said on radio on Monday.

He said that landlords are likely to try to recoup the monies they pay in tax by raising rent.

“[They are] not going to pay the full property taxes and ain’t pass on something to the persons who is renting the house,” Eustace said.

In keeping with the New Democratic Party’s (NDP) belief that there is an unofficial wage freeze here, Eustace said: “When you have impact on rent, then you have a freeze on wages, then it means that the person has to use more of their existing money that they get every month to pay their rent.”

He said such a person then has less to buy food, pay for utilities and other commodities “because they have the same salary”.

“So it is going to have its impact on the other things that you need to purchase because you are going to have less money to purchase those,” said Eustace, an economist.

“That is how it multiplies. So you see the impact is going on and on and on and it is all negative. It’s making things harder for you to earn and have a reasonable standard of living,” he further stated.

Read also: ‘Don’t sic me on’ PM tells landlords 

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Discussion

7 thoughts on “Opposition Leader notes ‘multiplier effect’ of new property tax

  1. Oh Lord ULP; despite having good persons in the LAnd and Planning Division there are NO qualified Real Estate Valuators and there seems to be a monopoly on who can get to “value house an lan” now i qualified as a Real Estate Valuator and met fierce opposition in trying to get to value people’s house and land.

    My point is that if the persons who the Government is using to gain appraisals of property are utter incompetents (all of them have studied Quantity Surveying) in the field of appraisal and value calculation how can they administer the new tax effectively and fairly. What has happened in the past is a “friend thing” with regards to who comes to value your house and the amount you will then pay in tax.

    Market value can be defined as the highest price a buyer is willing to pay and the lowest price a seller is willing to accept on a particular piece of property. Another definition for market value is the price a house will sell for within a certain amount of time. One more definition for market value is that it is the most probable price a particular property should sell for in a competitive and open market with all conditions for that market being met by the property, such as the buyer and seller acting on their own and the price not being affected by any undue stimulus. Market value is usually not the price the property could have been sold for, but is the price the property is sold for.

    Can people like A.Williams, Browne etc really compute and calculate these things ? Oh Lord ULP, a successful tax is only as good as the persons who administer them…..

    Posted by Marcus Soares | February 8, 2012, 09:04
    • Market Value

      “The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”

      according to http://en.wikipedia.org/wiki/Market_value

      Posted by Noone's Angel | February 8, 2012, 10:10
      • NOONES’S ANGEL do me a favour, Please explain your definition so that “ARWE” could understand what the hell all of this means in light of the issue at hand. Not all of us a educationally sophiticated like you. Plenty of us, according to our PM, are dunce. So Please do us the honour.

        Posted by Olbap | February 8, 2012, 13:51
  2. Remember these words “I am here to finish the work of Maurice Bishop” When Bishop put on the house tax in Grenada he brought the house value and sales to a standstill. Wrecked the property real estate market, property stopped selling and people didnt build or make their property more valuable, because it meant them paying more property tax.

    This tax will initially bring in more revenue to the Gonsalves government coffers, but it will further wreck the economy of SVG, because the only thing that is keeping us going is building and renovation work. It will throw hundreds out of work. It will also drive the harware and builders merchant shops out of business.

    To put any extra or new tax’s on during a recession and wage freeze is downright stupidity and a criminal act.

    Well all you idiots voted for a Marxist scum bag and you got him in the full glory and memory of Maurice Bishops work, thankfully Bishop is a very dead scum bag.

    WAKE UP AND SMELL THE SULPHUR

    Posted by Peter | February 8, 2012, 13:28
  3. I am gathering here that the opposition is suggesting that Landlords should increase rent, OK, no problem increase it, not by 15% per month but by 15% per year or one and a third percent per month. I am sure the tenants wouldn’t mine that!!!!!!

    Posted by no-nonsense | February 8, 2012, 21:42
  4. NO-NONSENSE anything put on a poor mans rent can only mean eating less. This is not the time tax people into starvation..

    Don’t forget almost ever apartment on the island is empty, since as I personaly believe, Gonsalves drove the Medical school out.

    There is no rebate for empty houses and apartments, just an increase on peoples costs added to their unpayable mortgages.

    WAKE UP AND SMELL THE SULPHUR

    Posted by Peter | February 12, 2012, 18:05
  5. Look, if we get hard up because of the ULP scews being put on to fund their crap leadersip. We can all go to the Argyle Airport soup and food kitchen, they buy enough food to feed the nation, own the government, own the airport, own the swill. Plenty of room at the trough.

    Posted by Peter | February 14, 2012, 19:05

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