分类： business

In a groundbreaking move, Trinidad and Tobago’s Finance Minister Davendranath Tancoo has announced a review of the Value Added Tax (VAT) regime, with plans to potentially replace it with a sales tax. This marks a significant departure from the fiscal landscape, where VAT has been a cornerstone since its introduction in 1989. The proposed shift aims to simplify the tax system, ensure revenue preservation, and promote equity, particularly for low-income households. However, the transition requires meticulous planning, including legal amendments, administrative restructuring, and IT reconfiguration, which will take considerable time. The budget also includes measures to make certain food items zero-rated, acknowledging that VAT will remain in place for the foreseeable future. The current VAT system has been a major revenue generator, contributing $6.6 billion in 2023, $9.5 billion in 2024, and an estimated $8.3 billion in 2025. These figures highlight the importance of careful implementation to avoid replacing one set of challenges with another. The idea of a sales tax is not new; it was first considered in the 1980s but was shelved due to administrative complexities. While businesses historically favored VAT, the proposed review signals a recognition of the need to address systemic inefficiencies, such as delayed VAT refunds and audit inefficiencies. A sales tax, applicable only at the point of transaction, could simplify the process and shift focus from what is being purchased to who is purchasing it.

In a renewed twist to the long-standing saga of CL Financial (CLF), a High Court judge has halted the sale of a key asset of the defunct conglomerate, prompting Commissioner of Police Allister Guevarro to direct the Anti-Corruption Investigation Bureau (ACIB) to probe the transaction. This development, reported on October 13, marks another chapter in the tumultuous history of CLF, which collapsed in 2009, leading to a $28 billion state bailout. The ACIB’s investigation comes over a decade after it first launched a criminal probe into former CLF executives for their role in the company’s downfall. This time, the bureau is examining allegations of irregularities in the sale of group assets, including the Trincity Mall, which was sold for $505 million in 2024. Shareholders and creditors have raised “grave concerns” about these transactions, which occurred even after the Central Bank relinquished control of Clico, CLF’s former insurance arm, in 2022. The public’s demand for transparency grows as questions linger about the ACIB’s recent transfer from the police to the Office of the Attorney General. Past investigations, such as the Colman Enquiry initiated by former Prime Minister Kamla Persad-Bissessar, have yielded little accountability, with key figures like CLF’s Lawrence Duprey passing away before justice could be served. As Ms. Persad-Bissessar returns to power, there is hope that the findings of the Colman Enquiry will finally be published, though concerns remain that this latest probe may follow the same inconclusive path as its predecessors.

As Trinidad and Tobago (TT) marks the International Day for Disaster Risk Reduction on October 13, the nation confronts a pivotal juncture in safeguarding its industrial and energy sectors. These sectors, the backbone of TT’s economy, are grappling with aging infrastructure, climate vulnerabilities, and inadequate emergency response capabilities. While natural disasters like hurricanes and floods often dominate risk discussions, the threat of industrial disasters looms equally large. TT’s reliance on oil and gas—spanning upstream, midstream, and downstream operations—has left it exposed to systemic risks as critical assets, including pipelines, tanks, and flare systems, operate beyond their intended lifespans. Without sustained reinvestment, these once-cutting-edge systems have become national liabilities. Industrial emergencies, such as the 2013 oil spill and the 2024 barge disaster off Tobago’s coast, underscore the cascading impacts of such incidents, which disrupt livelihoods, ecosystems, and economic stability. The region’s history of pipeline failures, chemical spills, and oil leaks highlights the urgent need for robust emergency preparedness. However, TT faces significant gaps in both equipment and responder competency. Outdated fire suppression systems, gas detectors, and spill containment gear, coupled with insufficient training, hinder effective crisis management. To address these challenges, TT must elevate its standards, ensuring that emergency responders meet internationally recognized benchmarks. Certifications aligned with global best practices, modern technologies, and methodologies are essential to fostering credibility, confidence, and international collaboration. Industrial resilience is not merely a technical necessity but a strategic imperative for sustaining foreign investment, infrastructure development, and economic diversification. As climate change amplifies the risk of natural disasters triggering industrial failures, TT must prioritize a culture of competence, transparency, and accountability. The nation’s ability to thrive in a new energy era hinges on its capacity to manage industrial risks effectively. Investments in training, certification, and equipment are investments in resilience, safeguarding people, communities, and economic continuity. TT stands at a crossroads: it can either react to disasters or build a system capable of preventing them. The choice will shape the nation’s safety, reputation, and prosperity for generations to come.

In the evolving landscape of modern business, attention has become the new currency. However, mere attention is no longer sufficient to sustain success. The year 2025 marks a pivotal shift where every scroll, like, and comment represents a micro-transaction in culture. Creators, once content with being digital celebrities, are now transforming into founders, curators, and architects of immersive, creator-led experiences. These businesses bring digital storytelling to life through cafes, tours, events, and tangible products, fostering a sense of belonging among consumers. The future of business lies at the intersection of content and community, where storytelling extends beyond the digital realm into real-world spaces that make people feel part of a narrative. This global phenomenon is not confined to major markets; it is also gaining momentum in the Caribbean. Creators like Jamel ‘Certified Sampson’ Sampson, Kyle Boss, and Gervail ‘Jr Lee’ Lee are turning digital influence into thriving physical businesses, from ice cream shops to comedy tours. The data underscores this trend, with Goldman Sachs projecting the global creator economy to reach US$480 billion by 2027. However, scaling this movement requires a supportive ecosystem, including stronger digital infrastructure, investment in innovation, and government recognition of creators as cultural exporters. As Caribbean entrepreneurs embrace this shift, the focus is on building creator-led experiences that will define the next decade of business. To aid this transition, digital strategist Keron Rose is hosting a workshop titled the Digital Revenue Roadmap, offering insights on monetizing digital presence and creating sustainable income ecosystems. The time has come for Caribbean entrepreneurs to move beyond products and craft experiences that resonate globally.

CARIB Brewery has announced a substantial price increase for several of its popular beverages, including Carib, Stag, and Guinness, in response to the government’s decision to double excise duties on alcoholic drinks as part of the 2026 budget. The new pricing, effective immediately, sees Carib, Stag, and Pilsner rise to $13 per bottle, up from $10-$11 previously. Stouts like Royal Extra Stout now retail at $15, while Guinness and Heineken have both increased to $22 per bottle. Non-alcoholic products such as Malta and Shandy have also risen to $10, though prices for Smirnoff Ice, Caribe Hard Cider, Vitamalt, Ginseng-Up, Smalta, Heineken 0.0, and Rockstone Tonic Wine remain unchanged. The price adjustments are directly linked to Legal Notice No 376, which raised the excise duty on alcoholic beverages from $5.14 to $10.28 per litre. This change took immediate effect for locally produced alcohol, including Carib Brewery’s products, as excise duties are payable when goods leave bonded warehouses for sale. Imported products will face similar increases later, pending review by the Solicitor General’s office. In a statement, Carib Brewery described the price adjustments as a ‘responsible and measured response’ to the government’s move, emphasizing efforts to balance economic realities with consumer affordability. The company also pledged to continue investing in its people, brands, and infrastructure while maintaining product quality. The announcement follows reports that Carib temporarily paused deliveries earlier in the week to recalculate costs, with bar owners awaiting new price lists before confirming retail adjustments. Bar Owners Association president Satesh Moonasar noted that the 100% rise in excise duty would likely be passed on to customers, as most bar operators cannot absorb the full increase. Finance Minister Davendranath Tancoo defended the duty hike during his October 13 budget presentation, stating it was part of a broader effort to raise revenue after years without adjustment, with the impact on individual bottles of beer being minimal.

In a significant move aimed at streamlining taxation and boosting economic efficiency, Trinidad and Tobago’s Finance Minister Davendranath Tancoo announced plans to replace the existing Value Added Tax (VAT) system with a sales tax during the 2025/2026 budget presentation on October 13. The VAT system, in place since 1989, has been criticized for its administrative complexity, backlog of refunds, and negative impact on business confidence. Tancoo emphasized that the proposed sales tax system would be simpler, more efficient, and aligned with models used in countries like the US and Canada. The current VAT rate stands at 12.5%, but the new system aims to eliminate loopholes and improve compliance through better resource allocation and digitization. Additionally, the government announced the removal of VAT on ‘basic’ food items, effective October 17, to address national food affordability. This includes products like pumpkin, watermelon, and coconut water. Industry leaders, including the TT Manufacturers’ Association and the Supermarket Association, have expressed cautious optimism, highlighting potential benefits such as reduced administrative burdens and improved cash flow for businesses. However, concerns remain about the transition process, particularly for small enterprises and farmers, who may face challenges in adapting to the new system. The government has pledged to ensure the transition is revenue-neutral and socially balanced, with protections for low-income households.

In a landmark announcement during the 2025/2026 national budget presentation, Finance Minister Davendranath Tancoo unveiled sweeping reforms to the National Insurance System (NIS). These changes, aimed at ensuring the long-term sustainability of the system, include a phased increase in contribution rates and a gradual rise in the qualifying age for full pension benefits from 60 to 65 years, effective January 2028. These measures, though initially surprising to some, were deemed both inevitable and necessary following the 11th Actuarial Review, which warned that the National Insurance Board’s (NIB) reserves could be depleted within eight years without decisive action. The reforms reflect global demographic trends, including aging populations, declining birth rates, and a shrinking workforce, which are placing immense pressure on social security systems worldwide. Minister Tancoo reassured citizens that those retiring before January 1, 2028, will remain unaffected, and existing pensioners will continue to receive their full entitlements, including the minimum pension at age 60. These reforms have been welcomed by financial professionals as a demonstration of fiscal responsibility and a commitment to long-term sustainability. Similar measures have been adopted globally, with countries like Denmark, France, the United Kingdom, and Barbados adjusting their retirement ages to align with demographic shifts. While these changes may be challenging, they are essential to preserving the integrity of the NIS, which supports over 200,000 citizens in securing income and dignity during retirement. By acting now, the government aims to safeguard the financial well-being of the nation and ensure future generations benefit from a stable and reliable safety net.