分类： business

In a significant move impacting the local beverage industry, Trinidad and Tobago’s leading alcohol producers, Carib Brewery and Angostura, have announced substantial price increases across their product lines. This decision comes in response to the government’s recent doubling of excise duties on spirits, beer, and tobacco, as outlined in the 2026 national budget. Finance Minister Davendranath Tancoo revealed on October 13 that excise duties on spirits have surged from $79.25 to $158.50 per litre of pure alcohol, while beer duties rose from $5.14 to $10.28 by gravity. Cigarette excise also doubled to $10.52 per pack of 20, effective immediately. Excise duty, a tax levied on domestically manufactured goods, directly affects local producers like Carib Brewery and Angostura before similar adjustments are applied to imported products. Carib Brewery announced on October 16 that its new prices would take effect immediately, describing the move as a ‘responsible and measured response’ to the government’s fiscal policy. The company emphasized its efforts to minimize price hikes, adjusting only where necessary. Notable increases include Carib, Stag, and Pilsner rising to $13 per bottle from $10, while Royal Extra Stout now costs $15, up from under $10. Heineken and Guinness have jumped to $22 from under $16. Non-alcoholic beverages like Malta and Shandy have also seen price increases. Angostura, meanwhile, announced its price adjustments would take effect on October 17, citing the need to ensure business continuity and maintain its workforce of over 537 employees. The company expressed support for the government’s fiscal sustainability efforts while reaffirming its commitment to product quality and international market presence. The price hikes have sparked mixed reactions among consumers, with some criticizing the timing amid economic challenges, while others remain unfazed. Bar owners anticipate further price adjustments as new stock arrives. Finance Minister Tancoo defended the excise duty increase as a measure to boost revenue and promote responsible consumption, noting that the last major revision occurred nearly a decade ago. Both Carib Brewery and Angostura have pledged to continue supporting the local economy and maintaining product quality despite the new tax burden.

In the aftermath of Finance Minister Davendranath Tancoo’s budget presentation, reactions have been mixed, with some praising it as a ‘people’s budget’ while others remain sceptical of its long-term viability. The budget, which shifts financial burdens from the working class to banks, insurance companies, and landlords, has been described as a political solution to a complex economic problem. However, critics argue that this approach merely redistributes costs rather than addressing systemic issues.

In a welcome development for consumers, the Central Statistical Office (CSO) reported that inflation in September 2025 showed a modest deceleration compared to previous months. The inflation rate for September stood at one per cent, a notable drop from the 1.4 per cent recorded in August. This marks a significant shift from the 0.4 per cent rate observed during the same period in 2024. The all-items index, which tracks the average price movement of goods and services purchased by households, registered at 125.4 in September, reflecting a 0.2 per cent decline from August. Food prices, a major component of household expenditure, also saw a reduction, with the food and non-alcoholic beverages index falling by 0.8 per cent. This decrease was attributed to lower prices for staple items such as tomatoes, fresh whole chickens, and melongene, among others. However, this trend was partially counterbalanced by price hikes in other everyday essentials like cucumbers, Irish potatoes, and bottled water. The clothing and footwear index dropped by 0.3 per cent, while the health index saw a marginal decline of 0.1 per cent. Alcoholic beverages and tobacco experienced a slight increase of 0.1 per cent, with other categories remaining stable. These figures, derived from data collected nationwide, provide a comprehensive snapshot of consumer price movements in September. The CSO’s report, released four days after the government’s 2025/2026 budget presentation, offers the first official insight into post-budget inflation trends. The agency emphasized that its consumer price index is compiled using data from a wide range of retail and service providers, ensuring an accurate reflection of price changes across the country.

In a startling revelation, Trinidad and Tobago’s import cover has dropped to a mere 5.4 months, the lowest level recorded in decades. This critical metric, which measures how long foreign reserves can sustain national imports in the event of disrupted foreign earnings, serves as a barometer of economic stability. The sharp decline has sparked widespread concern among policymakers and citizens alike, signaling potential vulnerabilities in the nation’s financial health.

When the People’s National Movement (PNM) assumed office in 2015, the import cover stood at a robust 11 months. Over the subsequent decade, it gradually decreased to approximately eight months by early 2025. This decline, though worrisome, unfolded against a backdrop of global challenges, including energy shocks, inflation, and the COVID-19 pandemic.

However, the situation has taken a dramatic turn under the United National Congress (UNC) administration. In just five months, the import cover has plummeted from eight months to five months, a steeper decline than witnessed over the entire previous ten-year period. This rapid deterioration suggests deeper systemic issues, such as unsustainable foreign exchange spending, mismanagement of reserves, or a failure to restore investor and export confidence.

While supporters of the UNC may attribute the economic fragility to the PNM’s legacy, the current administration cannot evade accountability for its policy decisions. The alarming pace of the decline indicates either a lack of control or a failure to grasp the urgency of the situation. Trinidad and Tobago cannot afford a repeat of past foreign exchange crises.

Finance Minister Davendranath Tancoo and the Central Bank must now provide transparent explanations to the public. What policies have contributed to this steep decline in reserves? Are factors such as capital flight, excessive imports, or the depletion of savings to fund short-term consumption at play?

The numbers are unequivocal: the economy is losing reserves at an unprecedented rate. The government must act swiftly and with transparency to restore confidence and prevent a further downward spiral. The stakes are high, and the time for decisive action is now.