There will be absolutely no support for the Trinidad and Tobago Revenue Authority (TTRA) by the Tobago House of Assembly, nor will it agree to property tax.
That’s because Chief Secretary Farley Augustine has too many concerns and wants to meet with Prime Minister Dr Keith Rowley urgently to discuss them, as he accused the Government of being against Tobago’s development.
“We are proud of what we were able to achieve despite obstacles and what I would call pure unadulterated fight down, bad mind, and pure wickedness and spite!” Augustine said during his budget presentation
Against this backdrop, Augustine said the THA cannot support the TTRA because it is not in the island’s best interest.
“The legislation reveals a curious but not surprising insensitivity to the expressed aspiration of Tobagonians for self-determination. And it can be justifiably classified as a piece of colonial legislation. In this regard, I have formally written to the prime minister requesting an urgent meeting to discuss this very important issue,” he said.
Detailing his concerns about tax collection in Tobago, Augustine explained that for fiscal 2025, tax revenue is estimated as follows:
Income and profits $133.9M
Property $3.9M
Goods and services $70M
International trade $2.6M
Total tax revenue estimated: $214.5M
Property income tax is believed to be $.03 million, while other non-tax revenue is estimated at $1.31 million for a total of $1.43 million. Total revenue is projected to be $215.9 million but Augustine said this is not an accurate picture of revenues generated in Tobago.
“As it is well known, there are significant revenue streams generated in Tobago that are collected in Trinidad and not remitted to Tobago,” he said.
Augustine found it passing strange that Act No. 17 of 2021, which provides for the establishment of the TTRA, was passed and assented to on December 23, 2021, days after the new assembly executive assumed office and 48 hours before Christmas.
“I am not sure as to whether this development was coincidental or calculated, but given their nature, I feel it’s more calculated,” he said.
However, Augustine said there are several defects in the act which he believes place the THA at a disadvantage, revealing a “curious but not surprising” insensitivity to Tobago’s desire for self-determination which he justified as “colonial legislation”.
Among his concerns, Augustine said the act does not allow the THA to have any legal or formal remit over the establishment of the TTRA, or how it will be established. He said this has created confusion and anxiety among staff. The functional and reported relationship between the THA and the TTRA, as well as the assembly’s legal authority over the revenue collected in Tobago, is also brought into question.
“The authority is, by nature, a legislative creature and as such the defects identified must be comprehensively received before the THA can support the operationalising of the authority in Tobago,” he said.
As for property tax, he said they cannot support it until all Tobagonians can get their lands on their names, as some properties are still in the name of their “colonial masters”. The THA, he said, will establish a Legal Property Desk to assist people with the burden of administrating their property as a result.
He added that he received “political intelligence” that property tax will be implemented after general elections. However, he said that too will be rejected.
“Imagine having to pay property tax on lands that your family for generations cannot remove the colonial masters’ names from the deeds. Imagine having to pay property tax on lands you cannot collaterise or cannot mortgage against,” he said.
He said for this reason, in fiscal 2025 the THA will open a legal property desk staffed with lawyers to assist Tobagonians with the burden of administrating for their properties.
“This is only a stop-gap measure until such time as laws are passed to rectify this historical injustice,” he said.
Meanwhile, Augustine said the historical failure of Tobago’s real estate market will be addressed with the construction of 54 houses in the Riseland Housing Development, in collaboration with the Inter-American Development Bank.
“Our information is stuck at the Ministry of Housing and has not been sent to the Inter-American Development Bank, stalling this project. But with or without the collaboration, we shall build these housing units in Riseland,” he said.
More than 480 homes are earmarked to be constructed over the course of 36 months.
Furthermore, Augustine explained that the THA will be developing new social assistance grants for differently abled people to improve mobility and accessibility to and within their homes, as well as for their kin to take care of them when their parents cannot.
He said work to digitise the case management aspect of the social grants programme is ongoing and by the end of the first quarter of 2025, clients will be able to apply and receive grants digitally.
Prime Minister Rowley did not respond to WhatsApp questions sent on the matters raised by the Chief Secretary.