FINANCE Minister Colm Imbert says property owners are to only pay if they get valid notices of assessment of 2%.
In the Senate on Tuesday, Imbert confirmed that property owners who have not received their notice of assessment will not face penalties or interest for non-payment.
He explained that only those who have received a valid notice of assessment at the new reduced rate of 2%—down from the previous 3%—are required to pay. Any assessments issued at the old rate are invalid.
As the September 30 deadline looms, property owners have been experiencing long lines at payment centers. Imbert addressed concerns, stating that while no new centers will be opened, efforts are underway to expand the capacity of existing locations.
Responding to a question from Independent Senator Sunity Maharaj, Imbert said, “The rate of property tax on residential properties was reduced to 2%. So if someone has received an assessment using the old rate of 3% (of annual rental value), it is invalid.”
In response to queries about online payment options, Imbert described the complexities involved, particularly regarding the accurate recording of revenue. The government is collaborating with commercial banks to facilitate online payments, ensuring full remittance of funds to the treasury without service charge deductions.
Imbert assured that a solution is imminent, allowing property tax payments to be made online, similar to utility bills, with immediate receipts provided. Additionally, options for credit and debit card payments are being explored.
He said, “Unlike your water bill or your electricity bill, which we’re all accustomed to paying online, when the payment is remitted to the relevant statutory authority, or even in case of a telephone bill, such as Digicel or TSTT, the financial institution deducts an appropriate percentage as a service charge for facilitating the transaction.”
When asked about a possible extension beyond the September 30 deadline, Imbert noted that the issue remains unresolved, as time for urgent questions had expired before he could respond.
In conclusion, Imbert reiterated that if property owners have not received a proper assessment notice, they are not liable for penalties. The government is working towards finalising solutions to streamline the payment process and reduce taxpayer confusion.
Imbert said, “Unfortunately, under the Audit and Exchequer Act, revenue must be sent in and there can be no deduction of a service charge.
“So what we have been looking at with respect to the commercial banks is a system where they will act as a collector of revenue, so that someone would make an online payment, the banks will collect those payments of property tax…identify who paid for what, when, and so on, and then remit the amount paid in full to the treasury to go into the Consolidated Fund for it to be recorded as revenue.
“The banks would then send a bill to the Ministry of Finance for the service charge. So that the payment of revenue must always be 100%, there can be no reduction from it. That is complication number one.”
He added, “Complication number two is that systems must be in place to ensure that the payment of the property tax is properly recorded as revenue. You will remember that the source of the problem – the impasse, as it is called by the media – between the officials in the Ministry of Finance and it now appears also the Central Bank, and the Auditor General is a question of accurate recording of revenue.
“So what I would not want to happen is a situation where people make their property tax payments online and it is not properly recorded as revenue in the Consolidated Fund. And then we will get another report from the Auditor General and that will start another set of confusion. But we are very close to a solution with respect to this matter. I expect it to be imminent.”
