Dear Editor,

The recently concluded budget debate has understandably generated significant public discussion, particularly around the introduction of new revenue measures.

It is worth acknowledging that this development is somewhat unusual in the Jamaican context as for nearly a decade successive Jamaica Labour Party administrations have largely avoided introducing new taxes, focusing instead on fiscal consolidation and debt reduction. However, the re-emergence of new revenue measures should also prompt a broader national conversation, not simply about what new taxes may be required, but about how effectively the Government is collecting the taxes that already exist.

Property tax provides perhaps the clearest example of the gap between policy design and policy execution.

Property tax is one of the most important sources of revenue for Jamaica’s municipal authorities. These funds support services that citizens rely on every day, including garbage collection, street lighting, maintenance of public spaces, and elements of community infrastructure administered by local government. According to information published by the Ministry of Local Government and Community Development, property taxes account for more than 30 per cent of the revenues of local authorities.

Yet, despite its importance, compliance with property tax obligations across the country remains consistently low. Data published by the Ministry of Local Government indicates that property tax compliance has historically hovered in the region of 50-60 per cent of assessed properties. In practical terms, this means that close to half of property owners either pay late or do not pay at all. Earlier figures show that compliance in the 2013/2014 fiscal year was approximately 51 per cent, a level far below the compliance rates seen in many developed jurisdictions where property tax compliance often exceeds 90 per cent.

The implication is straightforward. Before the Government contemplates expanding the tax net through new revenue measures, it should first focus on improving the efficiency and effectiveness of collecting existing taxes. Even a modest improvement in property tax compliance would generate substantial additional revenue without imposing any new burden on those citizens who are already meeting their obligations. The solution does not require the invention of new taxes; it requires stronger administration and smarter enforcement.

First, greater integration between property ownership records and tax administration systems is essential. Improved coordination between the National Land Agency, the Tax Administration Jamaica, and the Companies Office of Jamaica would allow authorities to identify property owners more accurately and track delinquent accounts more effectively.

Second, the Government should consider mechanisms that address long-standing delinquency and idle property. In many jurisdictions, vacancy surcharges or penalties on persistently unused properties are used to encourage either occupancy or sale. Such measures ensure that property owners contribute to the municipal services from which their assets benefit.

Third, legislation should address the increasingly common practice of holding property through corporate entities to avoid certain transaction taxes. Where a company’s principal asset is real estate, a significant change in share ownership should be treated as a deemed transfer of the underlying property, ensuring that property-related taxes cannot be avoided through corporate restructuring.

Fourth, enforcement could be strengthened through the use of modern data tools. Utility consumption information from institutions such as Jamaica Public Service Company and the National Water Commission could help identify properties that appear to be vacant or underutilised while still benefiting from municipal services.

Finally, greater transparency around delinquent property taxes could encourage voluntary compliance. Publishing major arrears while also offering structured payment arrangements for those willing to regularise their obligations would help create a culture of accountability.

None of these measures require new taxes. They require something far simpler: the effective administration of the taxes that already exist.

If Jamaica wishes to strengthen public confidence in its fiscal policy, the priority should be clear. Before searching for new revenue measures, the Government must demonstrate that it can efficiently collect the revenues already due.

Javon Moatt

javonmoatt@gmail.com