Trinidad and Tobago’s hospitality industry is mounting a significant challenge against the government’s unprecedented 400% tax increase on gaming machines, setting the stage for a crucial meeting between industry representatives and Finance Minister Dave Tancoo on December 11.\n\nThe TT Coalition of Bars and Restaurants (TTCOBAR) and the Barkeepers Owners/Operators Association of TT (BOATT) characterize the tax hike as \”drastic and illogical,\\” warning it will devastate legal operators while driving gambling activities underground. Both organizations maintain that enhanced enforcement of existing tax rates—not increased taxation—represents the solution to revenue collection challenges.\n\nBOATT representative Satesh Moonessar expressed surprise at receiving the minister’s invitation, coming just days after Parliament passed sweeping gambling legislation that instituted fines up to $3 million for illegal operations. The government contends these measures address tax evasion, money laundering, and other criminal activities associated with unregulated gambling.\n\nMoonessar vigorously challenged the government’s rationale, arguing that compliance issues stem from chronic enforcement failures rather than tax rates. \”If someone was not paying the tax at $6,000, how in God’s name are they going to become compliant now when you’ve raised it by 400 percent?\” he questioned, noting that selective enforcement practices have undermined compliance efforts.\n\nThe industry representative projected that 50-75% of bars cannot afford the increased tax burden, potentially forcing widespread closures. He warned of cascading economic consequences, including job losses and impacts on related businesses such as food vendors and suppliers.\n\nTTCOBAR advocates for a modified approach that includes quarterly tax payments instead of full upfront payments and a reduced rate increase. The association estimates that a 50% reduction from the proposed hike could generate approximately $200 million annually through improved compliance.\n\nIndustry representatives emphasize that gaming revenue provides essential financial support for bars operating on thin profit margins. They contest government estimates of machine profitability, asserting that typical monthly earnings per machine are approximately $2,000—far below the official $10,000 projection.\n\nIn response, Minister Tancoo acknowledged significant tax evasion and fraud within the industry, noting that many amusement machines operated unregistered for years while generating unreported revenue. Despite his firm stance on ending these practices, he expressed openness to dialogue.\n\nThe dispute escalated on December 9 when approximately 30 bar operators gathered peacefully at Woodford Square near Parliament, accusing the government of victimization through consecutive measures targeting their industry, including increased alcohol taxes, commercial electricity rates, and landlord taxes.