Oct 2016 Financial News

New taxes from Thursday

Oct 17, 2016

From Thursday, consumers of alcohol and tobacco, as well as citizens who shop online can expect an increase in the prices of  these goods and services. 

In his budget statement on September 30, Finance Minister Colm Imbert announced a series of tax increases that would be enforced come October 20. The budget debate is likely to conclude in the Senate before then.

These specifically relate to imported and locally manufactured alcohol and tobacco products as well as online purchases shipped via air-freight. 

The minister proposed to increase “the excise duty on locally-manufactured tobacco products by 15 per cent as well as on alcoholic products by 20 per cent.”

With respect to imported tobacco and alcohol products, Imbert said, customs duty on imported tobacco and alcoholic products “from the Common Market origin will also be increased by 15 per cent and 20 per cent respectively.”

He said the Government expected to net an additional $120 million from the increase in excise and custom duties on locally produced and imported alcohol and tobacco products, $60 million from excise duties on locally produced alcohol and tobacco and $60 million on customs duties on imported alcohol and tobacco products.

He said concern for the health and well-being of citizens was at the heart of the increase in taxes on these products.

“This harmful use brings significant social and economic losses to individuals and society at large. In T&T, it costs the Government $500,000 per year to treat just one lung cancer patient. For far too long, we have had to deal with the negative consequences associated with the high consumption of these products,” Imbert said.  

In the case of online shopping, Imbert said a seven per cent charge will be imposed on purchases that arrive T&T through courier companies or brought in directly by individuals via air freight. This measure is expected to raise an additional $70 million. The online 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.”

Source:
Andre Worrell
Trinidad Guardian
Monday October 17, 2016

http://www.guardian.co.tt/business/2016-10-17/new-taxes-thursday