分类： business

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.

At a recent webinar on October 2, hosted by the Caribbean Digital Finance Alliance (CDFA), fintech professionals across the Caribbean convened to discuss the pressing issue of cryptocurrency regulation. The event, set to formally launch in November, was prompted by Trinidad and Tobago’s (TT) recent proposal to ban virtual assets, sparking a broader regional dialogue on the matter. Moderator Dennis Augustine emphasized that the discussion aimed to explore fundamental policy questions rather than critique specific legislation. He posed a critical question: Should the Caribbean adopt a cautious approach to virtual assets, or is outright prohibition the more prudent stance? Mark Pereira of ZLabs highlighted TT’s forex constraints, noting that the Central Bank’s opaque distribution of US dollars has led individuals to seek alternative methods, including cryptocurrency. Pereira advocated for regulated use of stablecoins to improve forex accessibility. Annie Bertrand of the CDFA underscored the influence of the Financial Action Task Force (FATF) in shaping regional financial compliance, while Prof Louis De Koker warned against the pitfalls of both pausing and banning virtual assets. Pereira proposed a public-private partnership framework, suggesting a regulatory sandbox to allow the Central Bank to test its systems. He emphasized that collaboration between the government and private sector could lead to a progressive virtual asset bill. De Koker echoed this sentiment, highlighting the private sector’s market insights as invaluable to regulators. With the global crypto market now valued at $4 trillion, the consensus was clear: all countries must adapt to this evolving financial landscape.

The ANR Robinson International Airport in Tobago is on track to become fully operational by March 2026, as announced by Finance Minister Davendranath Tancoo during the 2025/2026 national budget presentation. The airport, which underwent a comprehensive redevelopment and expansion project initiated in 2019, reached substantial completion in February 2025. The ‘practical opening’ of the terminal, marking the end of the construction phase, was overseen by former Prime Minister Dr. Keith Rowley. However, operational readiness, including staff training and system testing, remains underway. Minister Tancoo emphasized that the government is committed to ensuring the airport’s full operationalization by the second quarter of fiscal 2026, moving beyond the ‘practical opening’ phase. This development is expected to bolster Tobago’s tourism sector and establish Trinidad and Tobago as a key regional air hub.

Finance Minister Davendranath Tancoo has unveiled a $50 million smart-metering initiative aimed at modernizing Trinidad and Tobago’s water infrastructure. The program, set to launch in the 2026 fiscal year, is part of a broader strategy to enhance revenue generation and curb water wastage. Tancoo emphasized the government’s decision to scrap the WASA transformation plan, a move that safeguards 3,700 jobs and reallocates $30 million in savings to essential services. He highlighted significant improvements in water supply, particularly in historically underserved areas like Siparia and Maracas Bay, where residents now receive water three times a week and five days a week, respectively. Additionally, a $300 million pipeline replacement program will target key mains in Port of Spain, San Fernando, and Arima. The smart-metering system, initially proposed in 2019 by former Public Utilities Minister Robert Le Hunte, aims to enhance billing accuracy and reduce water losses. Despite previous resistance, the renewed initiative reflects the government’s commitment to sustainable water management.

In a bold move to revitalize its maritime sector, Trinidad and Tobago’s Finance Minister Davendranath Tancoo unveiled a comprehensive $12 billion investment plan spanning seven years. The initiative aims to create 3,000 jobs and reposition the nation as a regional maritime hub. Key strategies include streamlining immigration and customs procedures, implementing digital clearances, and developing public-private partnership (PPP)-driven marinas and super yacht facilities to boost tourism and attract foreign investment. Additionally, the government plans to repurpose underutilized state assets, such as transforming the Caroni racing complex into a world-class convention center in collaboration with the TT Manufacturers’ Association (TTMA). To further strengthen the economy, a new export academy will be established, aiming to produce 100 export-ready firms annually. The government will also partner with the TT Chamber of Industry and Commerce and the Inter-American Development Bank to provide SMEs with training in trade facilitation, financing, e-commerce, and global marketing. The Eximbank will resume its core mandate of supporting exporters through foreign currency loans, with payments initially made in TT dollars before transitioning to the loan’s currency. Transparency in eligibility criteria and public reporting will ensure fairness, particularly for SMEs. Other initiatives include launching a national registry of exporters, promoting a ‘buy local’ campaign, and advancing partial scope agreements with India and West Africa.

On October 13, Trinidad and Tobago’s Finance Minister Davendranath Tancoo presented the national budget for the 2025-2026 fiscal year in the House of Representatives. The government has outlined a planned expenditure of $59.232 billion, based on projected oil prices of US$73.25 per barrel and natural gas prices of US$4.35 per mmbtu. However, current market prices stand at approximately US$60 for WTI crude, US$63.50 for Brent crude, and US$3.09 per mmbtu for natural gas, indicating potential revenue challenges. Minister Tancoo projected total revenues of $55.367 billion, resulting in a fiscal deficit of $3.865 billion, which equates to about 2% of the country’s GDP. This deficit remains within the internationally accepted benchmark of 3%. The budget prioritizes key sectors, with education and training receiving the largest allocation of $8.76 billion, followed by health ($8.21 billion), national security ($6.36 billion), public utilities ($3.39 billion), and infrastructure ($1.94 billion). Tancoo emphasized the government’s commitment to inclusive growth, stating, ‘When the UNC wins, everybody wins,’ and expressed pride in the budget’s figures.

In a significant fiscal move, Trinidad and Tobago’s Finance Minister, Davendranath Tancoo, announced the introduction of a 0.25% asset levy on commercial banks and insurance companies operating in the country. The announcement was made during the presentation of the 2025/2026 national budget at the Red House on October 13. Minister Tancoo highlighted that these institutions, due to their substantial size, profitability, and strong asset bases, have consistently reported high earnings and liquidity ratios. He attributed these outcomes to conservative lending practices and favorable monetary conditions. However, he noted that the average citizen continues to face exorbitant fees and negligible returns on savings and investments. The proposed levy, which excludes institutions operating under the Special Economic Zones Act, is set to take effect on January 1, 2026, and is projected to generate approximately $575 million annually for the national revenue.

Following weeks of speculation, Caribbean Airlines (CAL) announced on October 13 the immediate resignation of its CEO, Garvin Medera. The airline’s board of directors confirmed the departure and appointed Chief Operating Officer Nirmala Ramai as the acting CEO to ensure operational continuity and stability. In a formal statement, the board expressed gratitude for Medera’s years of dedicated service and leadership, extending their best wishes for his future endeavors. Medera, in his farewell message, thanked CAL employees for their resilience and commitment during challenging times, as well as partners and customers for their unwavering support and loyalty. He emphasized the collective efforts that have driven the airline’s success. Under Ramai’s interim leadership, CAL’s senior management team will collaborate closely to navigate this transitional phase. The airline assured customers and partners that its full flight schedule will remain unaffected. The board highlighted that this leadership change aligns with CAL’s broader focus on stability, safety, and accountability. As part of the transition, CAL outlined five key initiatives: fostering open communication and care for employees and stakeholders; optimizing operations for efficiency and modernization; enhancing customer experiences through improved services; crafting a sustainable, long-term growth strategy; and conducting comprehensive audits to reinforce governance and safety. Additionally, CAL reaffirmed its commitment to internal talent development, prioritizing career advancement opportunities for existing employees before considering external candidates.