Prime Minister Mia Mottley has pushed back against criticism of new land tax rates, including from one of her own backbenchers, warning that arbitrary reductions could jeopardise the nation’s social care system.
Speaking during Tuesday’s debate on the Barbados Population Policy in the House of Assembly, Mottley addressed opposition mounted by St Philip North MP Dr Sonia Browne to increased rates affecting property owners with two or more acres.
Without mentioning the backbencher and former Cabinet minister directly the prime minister said: “I see others, including members in this House, talking about reducing land taxes just arbitrarily so, without recognising that the consequences of doing so will have an impact on another area of taxes and taxation,”.
Her comments come after Dr Browne sought to lead a protest movement against what she described as “substantial increases” in land tax bills. Dr Browne had raised concerns about stark price hikes, citing examples where some residents who previously paid just over $400 or $3 000 are now facing bills of over $4 500 or $8 300 respectively.
Mottley defended the government’s taxation policy, pointing out previous reductions in income tax and increases in reverse tax credit. “People forget that this government reduced Income Tax levels in 2019 for everybody. Increased reverse tax credit for who can benefit from it. Before you had to be earning $13 000 to benefit from it, now if you earn $25 000 a year, $2 000 a month, you get reverse tax credit,” she said.
The prime minister emphasised the delicate balance required to maintain social programmes. “There is a very delicate balance of what we are carrying, not because the numbers are not there, but on the other hand you are giving out a range of benefits with respect to free education and free healthcare and a number of support systems for the elderly,” Mottley explained. “Barbados has a strong caring infrastructure, and it does not come cheap.”
Underscoring the importance of land tax revenue, Mottley said that “given the significance of land tax revenue for the island’s social care system, a haphazard reduction in land tax collections is not an option”.
(SB)
