Oct 2016 Financial News

New alcohol, tobacco, online taxes start today

Oct 20, 2016

From today, smokers will be paying more for their favourite brands of cigarettes. The West Indian Tobacco Company Limited (Witco) has announced higher prices for 12 products, ranging from $15 for Broadway 10s to $36 for Dunhill 20s. Prices for du Maurier products now cost between $17 and $31.

This is the result of higher taxes on imported and locally manufactured alcohol and tobacco products which took effect at midnight. The excise duty on locally-manufactured tobacco products has increased by 15 per cent while on alcoholic products it is up by 20 per cent.

The measures, which were announced in the 2017 budget, are expected to net an additional $120 million in excise and custom duties, $60 million from excise duties on locally produced alcohol and tobacco and $60 million on customs duties on imported alcohol and tobacco products.

In making the announcement in his budget presentation, Finance Minister Colm Imbert had said it was based on concern for the health and well-being of citizens.

Another budget measure that took effect at midnight was the seven per cent charge on purchases that arrive in T&T through the courier companies or directly by individuals, via air freight. This measure is expected to raise an additional $70 million in revenue. 

The tax is 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.

AMCHAM: Online tax unclear

Meanwhile, AMCHAM T&T is urging the Government to rethink its position on the implementation of the online purchase tax (OPT), which is to be applied to all ‘online’ purchases sent via air freight.

In a release last night, AMCHAM said it was disappointed there had been no consultation with the private sector on the matter, either before the announcement in the Budget or before today’s implementation deadline.

AMCHAM said the Controller of Customs met with the courier and air freight companies for a first stakeholders meeting yesterday and it was “obvious that there is no  clear way forward, yet the OPT is targeted to be implemented within 24 hours.”

“The OPT (which to our knowledge is yet to be proclaimed in law) places the onus on the air freight and courier companies, and any company bringing in items via air to correctly identify which goods are for commercial use as opposed to personal use. The determination of the use of goods bought by a customer is not the purview of an air freight or courier company,” AMCHAM said.

“Further, it leaves these companies open to possible penalties as a company’s interpretation of whether an item attracts the OPT may differ to the interpretation of the Customs official. It is also unclear if medical supplies or lifesaving medicines would be considered an ‘online purchase’ and would therefore be subjected to the OPT.”

AMCHAM said the lack of clear rules/guidelines could further impede the country’s competitiveness, and  that it is important that as laws/guidelines change, the environment remain predictable.

“We are asking that the Government engage in meaningful dialogue with stakeholders. AMCHAM T&T, through its membership, represents more than 80% of the items brought in via air, and we remain ready to meet and work with Government on this and other initiatives,” it said.

Source:
Trinidad Guardian
Thursday October 20, 2016

http://www.guardian.co.tt/news/2016-10-20/new-alcohol-tobacco-online-taxes-start-today