INHERITANCE TAX COULD HIT 40 PER CENT

THERE is still anxiety in the country over claims of an incoming inheritance tax despite the government’s stout denial of the political opposition’s allegations.

Prime Minister Dr. Keith Rowley and Finance Minister Colm Imbert have stressed that there is no truth to the opposition’s platform contention.

The United National Congress insists that a 25 per cent inheritance tax is in the works.

A survey has found that in countries where such a tax exists, the cost could be as high as 40 per cent.

Inheritance tax is imposed on the estate (property, money, or possessions) of someone who has died.

It is paid by the beneficiary of the estate.

In the United Kingdom, the tax is reduced from 40 per cent to 36 per cent if at least 10 per cent of the estate is left in a will to a charity.

Inheritance tax is common in developed countries, although the charges vary.

The UNC made the startling claim at the start of the local government election campaign, and it has reminded some nationals of previous PNM pledges in which Rowley reversed his original stance.

The current PNM administration is enforcing a property tax in spite of Rowley’s vehement opposition to the measure several years ago.

Shortly after being dismissed as a government minister in 2009, Rowley told Parliament that “there is anger, anxiety, and resentment” over the tax.

He told the Patrick Manning administration: “Stop taking your own advice that nobody is annoyed.”

He said the tax was being imposed because of squandermania with the national largesse.

Rowley criticised the government for not introducing local government reform in order to pass the benefits of the tax to local communities.

But his administration is implementing the tax without LG restructuring, even though this was promised in the PNM’s 2015 general election manifesto.

He told Parliament in 2009: “If you try to defend the indefensible, you will create resentment and provoke people, and that is what we have at the moment.”

He slammed: “I want to tell my government that the tax I pay, I marking my money.

“It is to buy medicine for the hospital, chalk for the schools, and to pay old age pension.”

The Rowley Government has also reneged on a promise not to shut down the Pointe-a-Pierre oil refinery.

The Prime Minister told a political meeting at Marabella in September 2018: “The government is not closing down Petrotrin.”

But the facility was mothballed three months later and has not been restarted.

In the run-up to the 2015 general election, the PNM promised to reduce the 15 per cent Value Added Tax by 2.5 per cent.

This was done in the 2015-2016 budget but the tax was re-imposed on hundreds of items that were previously zero-rated.

The government has been seeking to improve tax collection in order to balance successive deficit budgets.

A priority of the incoming Revenue Authority is widening the tax net.