Share the burden!
While motorists using super and diesel gasoline had to dig deeper into their pockets after 5 pm yesterday, anyone who wins a million-dollar “Lotto” after December will have to hand over 10 per cent to Government.
Finance Minister Colm Imbert’s 2018 Budget yesterday also placed the burden of his package on a cross section of T&T, from motorists and gamblers to banks, businesses and energy clients.
“These are unusual times which call for major changes in policies, institutions and ourselves. This paradigm calls for serious adjustment for all,” Imbert said in his Budget delivery in Parliament
As calypsonian Black Stalin told us in 1988, ‘We can Make It If We Try’.”
The 2018 Budget at $50.5b is three billion less than the 2017 Budget of $53 billion. Projected deficit is $4.76 billion. The package is based on an oil price of US$52 and gas price of US$2.75 per MMBTU.
Detailing his theme “Changing the Paradigm,” Imbert reiterated economic problems, alleged People’s Partnership (PP) mismanagement and system deficiencies created the need for change. He said public appetite for Government expenditure was encouraged to such an extent the country was being asked to support a false economy - but it cannot continue.
Among fiscal measures, Imbert hiked the price of super gasoline from $3.58 per litre to $3.97 and diesel from $2.30 per litre to $3.41 with immediate effect. Later in 2018, the Energy Ministry will monthly publish the wholesale and retail product prices for five categories of fuel, which in future will fluctuate with the prices of oil and refined products.
Imbert also introduced a 10 per cent tax on all cash winnings from the National Lotteries Control Board effective December 1.
Citing extremely low tax compliance by members’ clubs and amusement gaming operators, Imbert increased existing rates of duty on all mechanical games. Electronic roulette devices in bars will attract a flat fee of $120,000 and 11 sets of taxes on gaming tables at clubs were hiked.
“Measures will be strictly enforced,” he warned, also noting emergence of online gambling costing outflows of US$200m annually.
Vehicle inspection station fees were increased from $165 to $300.
To prevent tax evasion on new and foreign-used tyres, customs duty for both are now 30 per cent. An “environmental” tax of $20 on imported tyres will also cover disposal of used tyres.
Imbert also announced a new tax regime for hybrid vehicles and those of smaller sizes, designed to prevent leakage of tax revenue. He said some people used tax waivers on hybrids to import luxury vehicles, adding some 35,000 vehicles were imported in 2017 costing US$500m in Forex loss.
A 35 per cent tax bracket was also slapped on commercial banks and a base tax rate of 30 per cent on all companies.
A 12.5 per cent royalty rate will apply on extraction of hydrocarbon resources to offset loss of energy sector corporation tax.
Licence fees for private medical/surgical/maternity hospitals were increased from $150 to between $25,000 to $100,000.
OTHER BUDGET HIGHLIGHTS
• Projected 2018 revenue—$45.8b
• $2.2b for Tobago House of Assembly; talks with Government for THA to borrow internationally; internal self-government legislation for Cabinet in 2018.
• US-funded system to identify arrivals/departures to T&T.
• Concessions to renergise Tobago hotel sector, including loans, refinancing.
• President to decide on Procurement Regulator, for early 2018 operation.
• Sandals negotiations “expected to be concluded shortly.”
• US$100m facility via Exim Bank to grant eligible exporters of Forex once they export and repatriate earnings.
• Yachting industry incentives for yachties seeking hurricane-safe port; Tobago marina through public-private effort.
• Tourism Regulatory & Licensing Authority to ensure best practice.
• URP, CEPEP under review. CEPEP for agricultural development.
• World bank Public Expenditure Review of health, education, social services expenditure.
• T&T Revenue Authority legislation for Parliament by December.
• Finance Audit Unit to audit state enterprises, government departments.
•Oil production up to 85,000 barrels daily (2020); Dragon Field gas (2020); Loran Manatee (2023).
• Team to implement Lashley report on Petrotrin.
• Small/medium business grants up to $100,000.
• $100,000 incentive to private businesses to build low income houses.
• Agricultural financial grants up to $100,000.
• Live music district to be established; new TTT to air local films.
• Texas company to relocate to PoS as T&T bids to become outsourcing location.