Former CEO of the Land Settlement Agency (LSA) Dr Allen Sammy fears that if Government imposes property tax on squatters it would legitimise their occupancy on State and private lands.
He said while the Ministry of Finance might generate millions of dollars in tax collection from illegal land occupants, the State would be duty bound thereafter to regularise and put in infrastructure and amenities to develop this country’s 351 squatting sites.
His comments follows a statement by Prime Minister Dr Keith Rowley who said once squatters identified themselves as the owners of property they will be required to pay property tax.
Speaking on Thursday, Rowley said, “the tax applies to owners of property, so in so far as squatters identify themselves as owners of property, then they fall under the law.”
“What would be the consequences after that in terms of the economy and national development? While the Government would collect a couple millions in taxes from squatting settlements, they would have to pay far more in the long term. If you force them to pay tax that legitimises them where they are. Do you want to legitimise squatters without due process, relocation and regularisation?”Allen asked.
Sammy said his interpretation of the tax imposition was if a squatter pays taxes then he/she becomes the owner of the land.
“It would mean you have endorsed me as a squatter by charging a tax. It means you cannot touch me. So the State would give them rights to the land and they in turn would make demands on the Government. That is the context in which I am saying it would not work.”
In essence, Sammy questioned what would be the trade-off between the Government and these illegal occupants.
In 2011, Sammy had estimated 300,000 squatters living on State and private lands.
Of the 300,000 Sammy had estimated that 50,000 squatting families live on State lands.
Yesterday, Sammy estimated between 17 to 20 per cent of the population are squatters.
He said while Government was trying to raise revenue in a struggling economy and in recessionary times, he wondered if the move made sense.
Insisting that squatters should not be exempted from paying taxes, Sammy suggested that Government with immediate effect give the Commissioner of State Lands, LSA and Forestry Division the authority and manpower to stop squatters from invading and building on its lands.
The LSA is authorised under the State Land Regularisation of Tenure Act number 25 of 1998 to prevent and contain further squatting on state lands and to regularise eligible existing squatters.
A person who is eligible for regularisation must have occupied a dwelling house on the property prior to January 1, 1998, and applied for a Certificate of Comfort before 2000.
