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Today's Uprise in Jamaican Property Taxes

Today's Uprise in Jamaican Property Taxes

Henceforth, Jamaicans will have to pay as much as 60% more for property taxes effective April 1st.
On Tuesday night, Finance and Public Minister Audley Shaw, made the statement within the first day’s session of Parliament’s Standing Finance Committee, that is checking the 2010/2011 Estimates of Costs which have already seen a $4.5 billion increase.
There is no doubt that the government will require a significant improvement on today’s 55% compliance rate for property taxes, if it really wants to supply the country with adequate solid waste management, street lighting and  local authorities administrative functions.
Together with an expected 70% compliance rate, Shaw awaits for an extra $3 billion for these needs. The only key to this is compliance, as there is no loophole in a tight budget and the Jamaican Public Service has already run into an $830 billion debt for street lighting.
Shaw said that from April 1st 2010, the present $600 flat rate which is suitable to the property unimproved value of up to $300,000 will be enlarged to $1,000.
As a result of the property unimproved value in an amount to exceed $300,000, the rates will go through a 0.75% increase for each additional dollar (up from 0.5%).
The order was signed by Shaw and on April 1st, these rates went into effect.
The last time when property taxes were increased was in 2005, under the People’s National Party administration. At the time, the system was stopped by the administration, so properties were valued on a band system.
Emphasising the importance of paying taxes, Shaw claimed that it was necessary to change the culture of thousands Jamaicans, who were sure that taxes were intended for somebody other than themselves. He added that it was an activity that required lots of education; also, that we have to use property taxes not to pay off debts, but to provide necessary public cleaning and safety, and other essential public services including street lighting.

 

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