The A Partnership for National Unity (APNU)-controlled Georgetown City Council has sparked controversy by approving a significant reduction in rates and taxes for political parties and certain other organisations, slashing the required payments to just 25 percent of the assessed value. This decision, which comes at a time when the cash-strapped municipality is struggling to provide essential services, has drawn sharp criticism from members of the People’s Progressive Party Civic (PPP/C).
On Tuesday, several PPP/C councillors publicly condemned the decision, arguing that it would further strain the City Council’s already precarious financial situation. Councilor Patricia Chase-Green voiced her strong opposition, stating that the municipality desperately needs revenue to fund core services such as waste collection, drain cleaning, and public health inspections. “As members of the PPP Civic, we totally disagree with it. We think all political parties should pay the rates and taxes because we’re asking the ordinary citizens to do so, and we’re also complaining every day that we’re not getting money to do our basic duties in the city,” said Ms. Chase-Green.
The decision was passed on Monday as part of an ‘Institutional Rate Policy,’ which seeks to exempt political parties from paying rates and taxes or significantly reduce those payments. According to the policy, political parties that have been in existence for more than two years would qualify for the tax break, which is intended to help them reduce operational costs. Georgetown Mayor Alfred Mentore defended the policy, stating that political parties, being social welfare-oriented and not-for-profit organisations, deserve the relief to ease their financial burdens. “All political parties do have to go and beg for money at the end of the year to campaign for this and campaign for that. They don’t have the money as a corporate or any institutional entity to be able to do this,” the Mayor said.
Mayor Mentore also dismissed claims that the policy was introduced without proper consultation, asserting that PPP/C councillors were involved in discussions on the issue in various committees. However, PPP/C Councilor Alfonso De Armas contradicted this, expressing his frustration that the proposal was “sprung completely by surprise” towards the end of Monday’s statutory council meeting.
The policy has been met with scepticism, especially from PPP/C Councilor Don Singh, who pointed out that the APNU stands to benefit significantly from the exemption, as it currently owes over $250M in rates and taxes. Singh questioned the timing and rationale behind the policy, particularly in light of the government’s discontinuation of the amnesty period for late tax payments this year. He criticised the policy as being “hastily put together without any justification.”
Under the new policy, political parties that have existed for more than ten years are classified as “social and welfare institutions,” allowing them to be exempt from paying rates and taxes or to have those rates reclassified as “institutional rates” under the Municipal and District Council’s Act. This Act, specifically Section 214, allows a council to exempt properties used for the advancement of religion, education, or social welfare from paying rates, provided they are not for profit. However, exemptions for political parties are not explicitly covered under the law, leading to further contention.
