In Greek mythology, a phoenix is a long-lived bird that is cyclically regenerated or reborn. As the mythical phoenix periodically rises from the ashes, so does Trinidad and Tobago’s traditionally energy sector dependent economy cyclically rise from seasons of economic despair. However, in this current season of low oil prices, high unemployment, and against the background of a devaluing currency, has the Minister of Finance in his 30th September 2016 Budget document unveiled an alternate source of fuel that can propel the T&T Phoenix upward?
On September 30, 2016, the Minister of Finance released his Budget Document optimistically entitled “Shaping a Brighter Future – A Blueprint for Transformation and Growth“.
The following is a summary of the proposed fiscal measures:
| Subject | Proposed Measure | Proposed Date of Implementation |
| Value Added Taxes | Foreign yacht repair services will be a VAT Exempt service for yacht owners. | First Quarter of 2017 |
| Revenue Authority | Establish an independent body referred to as the Revenue Authority that will administer both taxation and customs. The new institution will be supervised by an independent board. | Fiscal Year 2017 |
| Transfer Pricing | To develop policy and legislation to govern transfer pricing in T&T. | None |
| Property Tax | To be implemented based on the Property Tax Act 2009, with minor amendments to the Valuation of Land Act. | Fiscal Year 2017 |
| Gaming | Re-Introduce the Gambling (Gaming and Betting) Control Bill. All forms of betting and gaming activities placed under a comprehensive regulatory framework. | None |
| Fuel Subsidy | To continue the incremental removal of the fuel subsidy and to increase the price of diesel by 15%. New price of diesel fuel will be $2.30 per litre, up from $1.98 per litre | Immediately |
| Alcohol and Tobacco | • increase the excise duty on locally-manufactured tobacco products by 15 percent as well as on alcoholic products by 20 percent; and • increase the customs duty on imported tobacco and alcoholic products from the Common Market Origin will be increased by 15 percent and 20 percent respectively; • increase the customs duty payable on alcoholic beverages and tobacco products imported into Trinidad and Tobago from extra-regional sources. | October 20, 2016 |
| New Tax Bracket for High Income Individuals and Companies | Introduction of a new tax bracket of 30% on high income individuals whose chargeable income exceeds $1 million per annum and on companies with chargeable profits also in excess of $1 million per annum. | January 1, 2017 |
| Tax on On-line Purchases | 7% charge on purchases that arrive in T&T through courier companies or are brought in directly by individuals via air freight. The tax will be due and payable at the bonded warehouses before clearance of goods or directly to customs in the same way that VAT and customs duty are currently collected. | October 20, 2016 |
| Agro-Processing Tax Relief | All approved agro-processing operations will be tax free. In order to be “approved” the qualifying criteria is that at least 75% of the processing of agricultural products must be done in T&T and 75% of the ingredients must be produced or harvested locally. | Second Quarter of Fiscal Year 2017 |
| Public Private Partnership (PPP) Business Tax relief | a 50% tax relief and other fiscal incentives to businesses which can mobilize private sector funding to provide public infrastructure and/or public facilities, amenities and services. Projects that increase productivity and create meaningful employment will also be considered for inclusion. | First half of Fiscal Year 2017 |