The Municipal Solid Waste Tax will only be imposed on property on which one lives and generates garbage.
Leader of Government Business in the Senate, Senator Maxine McClean, gave this assurance to property owners today in the Senate while introducing the Municipal Solid Waste Tax Bill, 2014.
Citing a hypothetical case to explain the new tax impost, the Government senator said: “The Municipal Solid Waste Tax is a tax which is intended to be captured on the value of property and it is on the site value of the improved land. I will use a fictional situation.
“I do have a house and that is not fictional which is mine. Assume that I have that land which I bought and I built a house on it. The site value of that land, let us assume that when I bought it I paid $100,000 and it is now valued $150,000. I constructed a house on it which is now improving that land and the house and land is worth $450,000.
“Other part is that since I have a son, and giving that Barbados is not growing and to ensure that he has property, I bought a piece of land somewhere in Barbados and it is sitting there. The site value of that is what appears on my tax bill.
“With the imposition of the Municipal Solid Waste Tax I will pay tax only on the property on which I live but not on the piece of land that remains unoccupied and without a building, without a home.
“And there is a logical reason to that. If the piece of land I had bought in anticipation of my son wanting to construct a house in Barbados is there, it is not generating waste, but I every day use packages, I consume fruits, vegetables and creating garbage and therefore the logic is where you create garbage you should make a contribution,” McClean added.
McClean pointed out that a property with a site value of $100,000 with a solid waste tax of 0.3 per cent means that the property owner will have to pay a tax of $300 per annum.
“The point I am making is that some people were saying that it was going to be a very large sum of money, but that is not the case. So basically what this tax is intended to do, is help Government pay for the cost of our growing consumption and generation of garbage whether it is household waste or commercial waste.
“It is intended to help foot the bill. In doing it this way, and replacing the Greening Levy what Government is therefore doing by this budgetary proposal is the spread the responsibility for assisting in the financing of the management of garbage across property owners in Barbados,” McClean said.