In a significant move during the October 13 budget presentation, the government announced a sharp increase in excise duties on spirits, beer, and tobacco, leading to an immediate surge in retail prices. Dianne Joseph, President of the TT Coalition of Services Industries (TTCSI), highlighted the dual implications of this decision: a potential boost to public health by curbing harmful consumption and a strain on the alcohol and tobacco industries. Joseph emphasized that while the policy aims to reduce alcohol-related accidents, violence, and diseases, it also places substantial cost pressures on major manufacturers like Carib Brewery and Angostura. These companies, being significant employers, may have no choice but to pass the increased costs onto consumers, potentially leading to higher prices for events and hospitality services. Balliram Maharaj, CEO of ADM Import and Export Distributors Ltd and Mayor of Arima, noted that such tax hikes are a common revenue-generating strategy for governments, especially given the decline in foreign exchange. Finance Minister Davendranath Tancoo detailed the new excise rates: spirits now face a duty of $158.50 per litre of pure alcohol, up from $79.25, while beer duties doubled to $10.28 from $5.14. Cigarette excise also doubled to $10.52 per pack of 20. Local companies have already adjusted their prices, with Carib, Stag, and Pilsner bottles now retailing at $13, up from $10, and Angostura 1919 seeing a price increase to $349.99 for a 750ml bottle.

Malabar/Mausica MP Dominic Romain has issued a stark warning that insurance companies are preparing to hike premium prices in response to the government’s proposed 0.25% levy on their assets. Speaking during the budget debate in Parliament on October 17, Romain, who also serves as the president of the TT Association of Insurance and Financial Advisors, revealed that he had met with leaders of major insurance firms to discuss the levy. He stated, ‘Based on what was said, preliminary numbers have been crunched, and increases are coming. It’s just a matter of how much and when.’

Romain’s comments came in response to Finance Minister Davendranath Tancoo’s call for companies to share the burden of the new measures and for citizens to resist cost pass-throughs. Romain argued that companies are unlikely to absorb the levy, as they have obligations to their shareholders, customers, and clients. ‘When the government intends to pick the pockets of these entities, you are in fact robbing the citizens as well,’ he emphasized.

The levy, announced by Tancoo on October 13, targets commercial banks and insurance companies due to their profitability, high liquidity ratios, and strong asset growth. Tancoo highlighted that despite these institutions’ financial health, average citizens face exorbitant fees and minimal returns on savings and investments. However, institutions operating under the Special Economic Zones Act will be exempt from the levy, which takes effect on January 1, 2026, and is projected to generate $575 million annually.

Romain also criticized the Finance Minister for portraying financial institutions as predatory, noting that many engage in corporate social responsibility and contribute to the community. He warned that applying the levy to institutions like Republic Bank, which is part of the National Investment Fund, would harm shareholders, including senior citizens relying on investment income for retirement expenses.