Finance Minister Davendranath Tancoo has unveiled plans for a significant tax reform in Trinidad and Tobago, aiming to replace the existing Value Added Tax (VAT) system with a sales tax. The announcement comes in response to growing concerns over the current VAT framework, which has been described as overly burdensome for businesses and the Board of Inland Revenue Division. Tancoo highlighted that the complexity of the VAT system has led to a surge in refund claims, eroding business confidence and complicating fiscal management. The proposed sales tax, to be applied at the point of final transaction, is touted as a simpler and more efficient alternative. Tancoo emphasized that the new system would eliminate the intricate process of calculating and auditing refund claims, making it easier to administer. The government plans to initiate the review process within the current fiscal year, supported by technical guidance. However, the transition will necessitate extensive legal amendments, administrative restructuring, IT system reconfiguration, and close collaboration with stakeholders nationwide. Tancoo assured that the government would address the existing backlog of refund claims and ensure that the shift to a sales tax remains revenue-neutral and socially equitable.