Campbell and BertramTHE GOVERNMENT is reporting a $1 billion shortfall as a result of its decision to review its property tax regime.
As such, crucial services such as the maintenance of community roads, as well as some fire-related services, are likely to be affected.
Colin Campbell, Minister of Information, told reporters at yesterday's post-Cabinet press briefing that the original figure of $2.4 billion that was announced by Local Government Minister, Arnold Bertram, in February, had been revised downwards. This follows last week's announcement that property owners will now be required to pay only the average tax rate for the value band in which they fall. There are 11 such bands.
The expected $2.4 billion at the new rates was based on a compliance rate of about 55 per cent. Last week, Bertram said a 70 per cent compliance rate had become necessary, and yesterday Mr. Campbell said this would yield only $1.4 billion.
Mr. Bertram told the House of Representatives last Wednesday that Cabinet had agreed that for the 2002/2003 fiscal year, the Government would not require property owners to pay the new tax as stated on their notices of assessment if it exceeds their provisional tax liability. Instead, they would be required to pay only the provisional tax liability.
"However, in cases where the previous year's tax is higher than the average, the property owner would pay the previous year's tax, the minister said.
While some services would be affected, the remaining $1.4 billion, if it was collected, would be enough to pay for street lighting and solid waste management. Of the amount, $511 million would be used to offset the annual street lighting bill, while $900 million will be spent on solid waste management, Mr. Campbell said.
A ministerial sub-committee has been set up to deal primarily with the communication issues that arise as a result of the confusion that has been created following the decision to revalue the more than 600,000 parcels of property, the first such review in 10 years.
To address the problem, customer service desks are to be set up in all 28 tax collectorates islandwide and information will be posted in post offices.
