The Georgetown Mayor and City Council (M&CC) will be hiking taxes by 10% for residential and commercial properties from the start of next year.
It is hoped that with the increased revenue, City Hall will be able to offset its expenses for various works across the capital.
The move to hike the rates was recommended by the M&CC’s Finance Committee after a meeting last Thursday, where it reviewed the rate structure for properties.
At yesterday’s statutory council meeting, where the committee’s report was adopted by way of a motion, Town Clerk Royston King said the city has not done any revaluation of properties within the last two decades. He noted that the council should seek the assistance of the ministries of Finance and Communities to have a revaluation of properties done.
However, he explained that while the revaluation would take time, council can move ahead and introduce a 10% increase in property taxes.
Chairman Oscar Clarke, in the committee’s report that was seen by Stabroek News, stressed that the council would need to justify the reason behind the hike in rates to the public.
Clarke said the council must produce documentation on what is proposed. He added that if the council wants to see improvement, there must be some means of justification with documents. “Council must look at the percentage increase across the board and give justifications,” he said, while pointing out that discussions must be held for medium-term and long-term plans for valuation of properties where recommendations are considered important.
Also supporting the increase for the hike were Councillor Alfred Mentore and the City Solid Waste Director Walter Narine. Mentore said if the council is going to jack up the rates, the services provided must be excellent and there should not be a scenario where “residents in some areas not being able to access some facilities.”
Meanwhile, Narine said that to his knowledge only Guyana collects commercial waste free of cost. He stated that the council is spending millions on a weekly basis to remove waste and businesses are paying limited rates. He noted that the last rate increase was done in 1992.
Additionally, King recommended that council moves ahead and sets up a valuation department for the city.
He explained that with its own department, the city would be able to accelerate valuation of properties rather than depending on the Ministry of Finance’s valuation department.
He added that with the division, council would be able to have different rates for different sections of the city. “For example in Bel Air those residents would likely pay a different rate from those living in Albouystown because of the facilities available,” he explained.
Recently, the city’s financial woes have halted infrastructural works. The Presidential Park project and the Kitty Market restoration were halted due to lack of financing. Garbage disposal companies contracted by the city have also threatened to discontinue their services due to lack of payments.
