In a groundbreaking move, Trinidad and Tobago’s Finance Minister Davendranath Tancoo has announced a review of the Value Added Tax (VAT) regime, with plans to potentially replace it with a sales tax. This marks a significant departure from the fiscal landscape, where VAT has been a cornerstone since its introduction in 1989. The proposed shift aims to simplify the tax system, ensure revenue preservation, and promote equity, particularly for low-income households. However, the transition requires meticulous planning, including legal amendments, administrative restructuring, and IT reconfiguration, which will take considerable time. The budget also includes measures to make certain food items zero-rated, acknowledging that VAT will remain in place for the foreseeable future. The current VAT system has been a major revenue generator, contributing $6.6 billion in 2023, $9.5 billion in 2024, and an estimated $8.3 billion in 2025. These figures highlight the importance of careful implementation to avoid replacing one set of challenges with another. The idea of a sales tax is not new; it was first considered in the 1980s but was shelved due to administrative complexities. While businesses historically favored VAT, the proposed review signals a recognition of the need to address systemic inefficiencies, such as delayed VAT refunds and audit inefficiencies. A sales tax, applicable only at the point of transaction, could simplify the process and shift focus from what is being purchased to who is purchasing it.