Compliance and cost

Sheila Ramnarine, a 72-year-old pensioner in St Augustine, rents out two small apartments to University of the West Indies students to supplement her income. She opposes Trinidad and Tobago’s newly introduced Landlord Business Surcharge, a tax on rental income, arguing the $2,500 registration fee and quarterly taxes—2.5% on income up to $20,000 and 3.5% above that—are unfair for small landlords struggling with rising costs. Ramnarine, who relies on rental income for medical expenses, fears the surcharge will force landlords to raise rents, reduce maintenance, or leave properties vacant. She also expressed concern over retrospective scrutiny of past income declarations, complicating efforts to formalize long-standing tenancy agreements. The measure was announced by Finance Minister Davendranath Tancoo in October’s budget, aiming to generate at least $70 million in revenue. Tancoo stated the surcharge would address unregistered rental properties and tax evasion, promoting fairness and transparency in the sector. The Institute of Surveyors of Trinidad and Tobago (ISTT) acknowledged the need for additional revenue but criticized the lack of consultation. It noted the rental sector’s dual role in providing affordable housing and supporting retirees, while warning that the surcharge may disproportionately affect small landlords without considering local market realities. Ramnarine and others submitted registration forms this week ahead of the Saturday deadline, though concerns persist about the surcharge’s impact on elderly and small-scale landlords. The ISTT offered to provide expert advice but emphasized the need for careful implementation to avoid unintended consequences.