The GSD has called the Gibraltar Government “desperate for cash” after the announcement of new tax measures on any sales by a person with three or more properties.
The new tax was announced by the Minister for Trade, Industry and Finance, Nigel Feetham, during the Budget last month.
But the opposition has said this Bill raises more questions than answers as to its application.
“This is a Government that is so short of cash that it needs to tax due to its historic misspending,” the GSD said.
“When it does so, it needs to do so with an eye on the effect it may have on inwards investment at a time when our economy is facing strong headwinds of uncertainty.”
“Investors need tax certainty and the Minister’s enthusiasm to randomly revamp our long-established tax laws, without consultation, is unnerving some.”
Roy Clinton, the GSD Shadow Minister for Public Finance and Inwards Investment, said the Bill lacks clarity.
“The Bill as drafted seems to go beyond what the Minister suggested in Parliament in it that he was seeking to tax ‘those who effectively have a property trade’,” Mr Clinton said.
“The Minister on social media has suggested this was to target ‘a few wealthy property speculators-those who buy large numbers of properties off-plan from developers’ but this Bill goes beyond that intention and lacks clarity.”
“The Bill in my opinion is too widely drafted and doesn’t specifically target ‘off-plan’ speculators as intended, I have privately advised the Minister of my concerns.”
“The reason for this measure will not be lost on people. It is the terrible lack of cash the government faces.”
“For the reasons well-explained during the Budget debate the GSLP/Libs are caught in a cycle of public finances mismanagement from which they cannot emerge and are just simply casting different nets to scoop up monies everywhere to fund their inability to keep to their budgets.”
Mr Clinton called Mr Feetham’s letter published in the Chronicle last Friday “simply inappropriate” as it discussed the private financial affairs of a citizen.
“Are people not able to engage with the Government without the risk of being embarrassed in public just because they disagree with a particular measure?” Mr Clinton said.