During a Senate debate on October 27, Opposition Senator Vishnu Dhanpaul and Independent Senator Anthony Vieira, SC, raised critical questions regarding the proposed increases in duties on alcohol and tobacco in Trinidad and Tobago’s 2025/2026 budget. The motions aimed to implement these duties, which Finance Minister Davendranath Tancoo estimated could generate approximately $800 million in revenue. However, Dhanpaul expressed skepticism about achieving this target, citing historical data from 2017 when a 20% increase in alcohol taxes led to a revenue drop from $900 million to $700 million. He also highlighted potential structural issues, such as increased smuggling and consumption of harmful products, as well as the cultural impact on traditions like Christmas and Carnival. Dhanpaul criticized the lack of a clear link between the tax hikes and public health benefits, noting that revenues would likely go directly into the Consolidated Fund rather than health initiatives. Vieira echoed these concerns, emphasizing the absence of stakeholder consultation and the adverse effects on businesses, tourism, and low-income earners. He warned that the sudden implementation of higher duties could disrupt cash flows, breach supply contracts, and make Trinidad and Tobago one of the most expensive destinations in the Caribbean for alcohol consumption. Both senators argued that the measures could erode social traditions and harm the hospitality sector, particularly small businesses and neighborhood bars. In contrast, Minister Kennedy Swaratsingh defended the tax hikes as part of a caring government’s efforts to uplift the poor and vulnerable, estimating potential health sector savings of $260 million.
‘People starting to turn to babash’ – Dhanpaul questions benefits of higher alcohol duties
