On October 2, 2017, Trinidad and Tobago‘s Minister of Finance released his Budget Document entitled “Changing the Paradigm”.
The following is a summary of the key proposed fiscal measures:
|Subject||Proposed Measure||Proposed Date of Implementation|
|Corporation Tax for Commercial Banks||Commercial banks will be subject to a flat 35% rate of tax.||January 1st 2018|
|Corporation Tax (Generally)||Companies will be subject to a new flat 30% rate of tax.||January 1st 2018|
|Export Allowance for the Manufacturing Sector||To re-establish export allowances to manufacturers; to establish a framework that would allow a reduction on tax for revenues generated from incremental exports to existing markets.||January 1st 2018|
|Energy Sector||12.5% royalty rate would be applicable on the extraction of all gas, condensate and oil. The fair market values of oil and gas will be fixed by the Petroleum Pricing Committee.||December 1st 2017|
|• Making the Supplemental Petroleum Tax responsive not to price but to underlying profitability.||TBA|
|• Extending the Supplemental Petroleum Tax to gas.||“”|
|• Reconciling and simplifying of the fiscal regimes applicable to the exploration and production and production sharing systems.||“”|
|Gambling Industry||The existing rate of duty on all mechanical games of chance for gambling of 20% be increased to 40%.||October 20th 2017|
|The introduction of a 10% tax on all cash winnings by the National Lotteries Control Board.||December 1st 2017|
|Electronic roulette devices operating in bars throughout the country, under the Liquor Licence Act, Chap 84:10 will now attract a flat device tax of $120,000 annually.||January 1st 2018|
|• The gaming tax which shall be payable annually under the Liquor Licence Act, Chap 84:10 will be increased from $3,000 to $6,000 in respect of each amusement game.||“”|
|• Various taxes on gaming tables and other devices by private members’ clubs would be increased.||“”|
|Property Tax||The payment of Property Tax under the Property Tax Act had been waived for the period January 1st 2010 to January 1st 2016. This is to be put into effect.||2018|
|Tax Administration||Introduction of the Trinidad and Tobago Revenue Agency (“TTRA”). The TTRA will manage both the Customs and Tax Divisions, and will also manage its own Human Resources. Legislation to establish TTRA to be tabled before Parliament in December 2017.||2018|
|Vehicles using Clean or Alternative Fuels||25% increase on the motor vehicle tax and customs duty on private passenger vehicles with engine sizes exceeding 1599cc and not exceeding 1999cc.
Moratorium up to December 31st 2017 for private passenger vehicles already in transit or already in Trinidad and Tobago.
|October 20th 2017|
|Removal of all taxes and duties on CNG vehicles with engine sizes under 1599cc.||“”|
|Import Duty on Tyres||Used tyres will attract the same 30% customs duty as new tyres. However, the customs duty on the importation of new tyres utilized on buses and lorries will remain at 15%.||October 20th 2017|
|Environmental tax of $20.00 per tyre on all tyres imported into Trinidad and Tobago.||December 1st 2017|
|Fuel Subsidy||An adjustment to the subsidy plus the increase in Gross Margins will increase the price of Super Gasoline from $3.58 per litre to $3.97 per litre and the price of Diesel from $2.30 per litre to $3.41 per litre.||Immediately|
Read Full Budget Document here:BUDGET STATEMENT 2018 BOOKLET
What are your thoughts? Please leave your comments in the box below.