The revised budget for 2016 is TT$59 billion in expenditure.
Revenue is TT$44 billion. Fiscal deficit is 4 percent of GDP
• Imposition of increases on taxes for gaming, alcohol and tobacco industry
There will be increased taxes on alcohol and tobacco products to come into effect by May 2016, after legislation is passed
Only 3 of estimated 250 Private Members’ Clubs have made statutory deposits; concerted effort to increase tax admin
• 50 percent increase in the customs duties and Motor Vehicle Tax on luxury vehicles with engine size that exceeds 1999ccs, with immediate effect.
• “A Levy of 7 percent on online purchase of goods and services through the internet from retail companies resident overseas that are not subject to taxes in Trinidad, for example, Walmart, Amazon, Dell and so on.
“This is a significant area of foreign exchange demand which is putting a strain on our reserves.
“The Tax will help manage the increase in foreign exchange outflows.
“It will take effect by Sept 2016,” said the Minister of Finance.
• 50% of arrears to public servants by end of June 2016
• Price of super gasoline will be increased by 15% to $3.58 and diesel also by 15% to $2/litre
• CEPEP will be returned to its original moorings in 2017 when government will reduce its direct support for contractors.
CEPEP was never intended to be a permanent program, but a business incubator.
These low productivity programs have distorted the labour market.
URP will be restructured to include substantive community construction projects, with agriculture in rural areas
• 50 percent increase in the customs duties and Motor Vehicle Tax on luxury vehicles with engine size that exceeds 1999ccs, with immediate effect
• Over US$300M injected into economy by Central Bank in last 3 mths
The Inter American Development Bank (IADB) has determined that the mass transit system is too expensive and not feasible at this time.
The government will therefore place emphasis on improving the road infrastructure across the country
• A new GATE program will be announced in time for the start of the new term with the aim of conserving expenditure to make a paradigm shift to a better alignment with the country’s development means. A committee set up to review Gate will give its report by July 2016