At the Trinidad and Tobago Manufacturers’ Association (TTMA) annual post-budget forum held yesterday at Port of Spain’s Hyatt Regency, TTMA President Emil Ramkissoon has made clear that timely Value-Added Tax (VAT) refunds are not a discretionary concession for local manufacturers – they are the rightful property of operating businesses.
Ramkissoon explained that persistent delays in disbursing owed VAT refunds have created crippling cash flow disruptions for local manufacturing firms. When these funds are released on schedule, he argued, manufacturers are able to channel the capital back into critical growth-focused investments: from upgraded industrial machinery and facility expansions to cutting-edge technology adoption, expanded inventory, and employee skills training. This cycle of reinvestment, he noted, directly drives higher production output, which in turn boosts the country’s export capacity. Greater export volumes generate much-needed foreign exchange, which ultimately strengthens and stabilizes the entire national economy.
This ripple effect is why the TTMA has long pushed for systematic reforms to VAT refund processes, including structural changes that prevent the accumulation of unpaid arrears and prioritize fast-track refunds for export-focused manufacturers. Addressing the new modernized VAT framework announced in the 2026/2027 national budget – a shift from last year’s proposal to introduce a sales tax – Ramkissoon expressed cautious support for the long-awaited updated system, but stressed that industry stakeholders cannot afford further delays, as VAT policy remains a make-or-break issue for TTMA member firms.
Beyond VAT reform, Ramkissoon praised the budget’s decision to cut excise tax by 25% for both locally manufactured and imported alcoholic beverages, excluding products that already receive preferential tariff treatment under existing national trade agreements. He also celebrated the shift from volume-based to ad valorem (value-based) customs duty calculation for alcohol products, a reform the TTMA has actively lobbied for over the past year. However, he called on the government to extend the same 25% excise tax cut to the domestic tobacco sector. Ramkissoon pointed to existing industry data showing that 12.8% of the tobacco market is currently made up of illicit trade, a problem exacerbated by the sector’s high tax burden. He did, however, voice approval for the government’s proposed new measures to crack down on illicit trade, including increased resourcing for the national Anti-Illicit Trade Task Force and the rollout of the new Customs Recordation and Information System.
Turning to economic performance, Ramkissoon highlighted the Finance Minister’s recent announcement that the non-energy manufacturing sector grew 11.6% year-over-year in the first quarter of 2026, with the food, beverage and tobacco subsector posting an even stronger 20.5% expansion. He also welcomed a slate of new budget measures designed to improve the overall ease of doing business in the country. These include mandatory e-filing through the Board of Inland Revenue’s GenTax platform, upgrades to the Integrated Tax Processing System, and enhanced information sharing between tax and customs authorities.
Ramkissoon also drew attention to the restructuring of EXIMBANK outlined in the new budget, outlining a series of key improvements the reforms will bring: a revised capital allocation framework that expands access to financing for small and medium-sized enterprises (SMEs) and domestic manufacturers; the introduction of clear, transparent eligibility criteria for funding alongside stricter reporting requirements; caps on capital allocations to individual entities to ensure broader distribution of resources; dedicated financing access for qualifying SMEs; and a prioritization of businesses that either generate foreign exchange through exports or reduce the country’s reliance on costly imports.