Gov't projects fall-off in property tax collection but warns against delinquency
Local Government Minister Desmond McKenzie is forecasting a fall-off in property tax collections because of the impending land tax increase, but he is warning that the Administration will not allow non-compliance.
The Government is this year trying to collect 65 per cent of the property taxes due, which should yield $7.4 billion.
It is also looking to collect $3 billion in arrears.
The minister says while the Government does not intend to use draconian measures to collect the arrears, it will seek to ensure compliance.
That's why he says the jobs of tax compliance officers could become harder this fiscal year.
IN PHOTO: Desmond McKenzie
The revised property tax rates announced by Finance Minister Audley Shaw will take effect on Monday.
Tax Administration Jamaica (TAJ) says as a result of the revision, 58 per cent of property owners will now see a reduction or no change in rates.
However, the TAJ says the others will see increases ranging from a low of 10 per cent to a high of 58 per cent.
Last financial year, more than $7 billion was collected in property taxes, exceeding the target by $350 million.
According to McKenzie, this was the highest amount ever collected.