Imbert outlines plans to split HSF

Reminding reporters that the country’s annual expenditure was $63 billion under the former People’s Partnership (PP) government, Imbert said that level of expenditure is no longer possible.

As he explained that the Government is the “major injector of funds” into the economy, Imbert said, “There is a point below which you should not go, because if you crunch it down too low, you will collapse the economy.” Indicating that point is $52 billion, Imbert stated, “We’re at that point right now.” The minister said people calling for expenditure to be reduced past that point are, “not being honest.” He questioned what else can be cut when everything has been cut, “almost down to the bone.” Reminding reporters that the net value of the HSF is US$5.47 billion, Imbert said the amendments to the HSF legislation would involve “a separation of deposits.” He explained one portion of monies would go to the heritage component of the fund, while the other portion would go to the fund’s stabilisation component.

Indicating that Government will soon receive the final advice of the technocrats on amending the HSF legislation, Imbert said, “This government and any future government would only be able to withdraw from the stabilisation component.” As he reminded reporters that Government withdrew US$251 million from the Fund, Imbert said money in the heritage component, would “not be touched unless very special criteria are satisfied.” He said the PP ignored advice from technocrats about borrowing money to deposit into the HSF.

Imbert said it made no sense, “borrowing money and putting it into a fund that you cannot touch.” In this regard, Imbert said the new rules governing the Fund, “will have to be based on reality.” On property tax, Imbert said the ministry will hire 248 new persons to do field assessments and supervise the implementation of the property tax legislation. Saying this was the equivalent of two and a half medium size state enterprises, Imbert said, “Within a 12-month period, we will have every property in TT on the books.” He said within the next two weeks, “notices of assessment will be posted or delivered to owners and occupiers of property throughout TT in accordance with the Property Tax Act.” Stating this was the first step in the exercise to initiate the collection of property tax, Imbert said a comprehensive communication plan will be rolled out over the next two months to address all issues concerning the tax.

He reiterated that property tax, “is based on the annual rental value of a property, not the sale price or purchase price or the value of a property per se.”