E-Malt.com News article: Trinidad and Tobago: Government proposed cutting excise duties on alcoholic beverages by 25%

Trinidad and Tobago’s government proposed cutting excise duties on alcoholic beverages by 25% and rewriting import tariffs for higher-value drinks on Tuesday as Finance Minister Davendranath Tancoo presented a TT$63.368 billion budget for 2027 that combines new social spending, tax changes and targeted surcharges, Vinetur reported on October 14.

Speaking in the House of Representatives, Tancoo said the government had reviewed the recent increase in alcohol taxes and wanted what he described as a fairer balance between support for local production, equal treatment of imports and revenue collection. He said the revised excise rates would apply to both locally produced and imported alcoholic beverages.

The government also plans to change customs duties on imported alcohol by replacing volume-based charges with rates linked to product value. Tancoo said the change would mean luxury products pay more duty, using champagne as an example. He said the measure would apply to imported alcoholic beverages that do not receive preferential customs treatment under Trinidad and Tobago’s trade agreements, with higher-value imports facing higher duties.

For the beverage industry, the changes could reshape costs and competition across the market. A lower excise rate may reduce pressure on producers and importers across the category, while the move to value-based customs duties could raise the landed cost of premium imported wines, spirits and other higher-priced drinks from countries outside preferential trade arrangements. That could give local manufacturers some relief while increasing the relative tax burden on upscale imports.

The alcohol measures were part of a broader package of 35 fiscal steps that included concessions, penalties and administrative changes. Tancoo described the 2027 budget as the next phase of the government’s economic agenda and said it was designed to attract investment, expand production, create jobs and strengthen resilience. The budget carries the theme “A People-Centered Approach: Investing in Communities, Transforming the Economy and Securing a Sustainable Future.”

At TT$63.368 billion, the budget is larger than the 2026 package of TT$59.232 billion and, based on the government’s figures, is the largest in the country’s history. The spending plan projects total revenue of TT$59.729 billion and a fiscal deficit of TT$3.639 billion. It is built on an assumed oil price of US$77 a barrel, up from US$73.25 in the 2026 budget, and a natural gas price of US$5 per MMBtu, compared with US$4.25 previously.

The budget includes a TT$250 monthly increase in the Senior Citizens’ Grant starting January 1, 2027. Tancoo said 124,000 senior citizens would benefit. He also announced a TT$250 increase in each tier of the Public Assistance Grant, affecting 13,637 recipients, and a TT$250 increase in the Disability Assistance Grant for adults and eligible children, affecting 28,000 people. He said more than 10% of the population would benefit from the grant increases at a total cost of TT$555 million.

Tancoo also proposed tax relief for pensioners. He said many retirees, especially former public officers, still pay tax on pension income above TT$90,000 a year. The government plans to raise the personal allowance for pensioners from TT$90,000 to TT$102,000 a year from January 1.

Another measure would double the foreign currency declaration threshold from US$5,000 to US$10,000. Tancoo said the current limit no longer reflects present-day travel and commercial realities and that a higher threshold would allow Customs to focus on higher-risk currency movements.

The government also set aside TT$2.5 billion to cover arrears for current and retired public officers linked to several unions and public bodies, including the National Union of Government and Federated Workers Union, workers in the Port of Spain and San Fernando city corporations and the Trinidad and Tobago Defence Force. On the Public Services Association, Tancoo said the budget includes funding to meet a proposal from the Chief Personnel Officer to pay 40% of outstanding arrears in cash. He said the government also intends to engage other unions with unresolved negotiations, including the Oilfields Workers’ Trade Union, the Transport and Industrial Workers’ Union, the Trinidad and Tobago Postal Workers’ Union and the Contractors and General Workers’ Trade Union.

On household utility costs, Tancoo announced a new electricity surcharge of five cents per kilowatt-hour on residential consumption above 3,000 kilowatt-hours per billing period, also starting January 1. He said 90% of households use less than that amount and would not be affected, while the surcharge would apply to the 10% of services consuming more than average.

The budget also includes tighter rules on tobacco and vaping products. Tancoo said possession of 10,000 or more tobacco products will now be treated as prima facie evidence of distribution. Importing 800 or more cigarettes will require an appropriate import license. A 20% customs duty will be applied to vaping devices and products.

The minister said the government was evaluating proposals from a shortlist of local and international investors after receiving a report from the Refinery Restart Committee. He also pointed to industrial projects that he said are expected to support employment. According to Tancoo, Pinnacle Steel and Vanadium Corporation and Ibis Steel, which is to refurbish the former ArcelorMittal plant, are targeting first production by the end of 2027, with about 1,000 permanent jobs expected. He said the investment pipeline contains 45 potential projects worth about US$2.17 billion, with the potential to generate more than 7,100 jobs.

The largest ministry allocations in the 2027 budget went to health at TT$8.061 billion and education and training at TT$8.033 billion. National security received TT$7.321 billion, public utilities TT$4.087 billion and Tobago TT$3.473 billion, which the government said equals 5.48% of the total budget. Other major allocations include TT$2.323 billion for rural development and local government, TT$2.081 billion for infrastructure, TT$1.712 billion for transport, TT$987 million for agriculture and TT$904 million for housing.

Tancoo used the speech to present a more favorable picture of the economy. He said headline inflation stood at 0.6% in July 2026 and food inflation had fallen to 1.7% from 4.7% in April 2025. He said net official reserves were US$5.4 billion, equal to 6.2 months of import cover. He also said employment rose by 5,100 people in the first quarter of 2026 compared with the same period a year earlier, bringing total employment to 564,000, while the labor force participation rate increased to 55.1% from 54.3%.

The minister also cited revenue from measures introduced in 2026. He said the asset levy on banks and insurance companies generated TT$397 million, the landlord business surcharge produced registration fees of TT$48.4 million and surcharge payments of TT$85.6 million, and the electricity surcharge on industrial and commercial consumers raised TT$89.4 million. He said the club gaming tax adjustment for liquor license holders generated TT$65.2 million, while higher customs and excise duties on alcohol and cigarettes brought in TT$1.23 billion.

The revised estimate for fiscal 2026 projects a deficit of TT$7 billion on revenue of TT$54.247 billion and expenditure of TT$61.247 billion, in line with the government’s mid-year review. Debate on the 2027 budget is due to continue Friday, when Opposition Leader Penelope Beckles is scheduled to deliver her response.


20 October, 2026