GA$ UP, VAT DOWN
http://www.trinidadexpress.com/20151005/news/gas-up-vat-downFINANCE Minister Colm Imbert spent two hours this afternoon detailing how he said the previous administration mismanaged the economy and squandered the country's money, before calling on citizens to help reverse the decline.
Among the actions to be taken to reduce the budget deficit and generate revenue lost from declining oil and gas revenue, citizens were told that with immediate effect, they could expect a 15 per cent increase in the price of super gasoline and diesel.
Delivering the new government's first budget, having taken office September 7, Imbert said the increase was the beginning of the PNM Government's plan to roll back the fuel subsidy, which had cost the country $19 billion in the past four years.
The price of super gasoline will increase from $2.70 per litre to $3.11 per litre.
The diesel price goes from $1.50 per litre to $1.73 per litre.
Imbert, addressing Parliament at the International Waterfront, Port of Spain, said the increase in fuel prices will see a $340 million reduction annual subsidies, however the fuel subsidy is still expected to exceed $1 billion.
The budget has been pegged at an oil price of $45 per barrel of oil.
Citizens can also expect to pay less Value Added Tax (VAT) on non-luxury items (from 15 per cent to 12.5 per cent), but should start saving to pay the property tax which will be reintroduced as of January 1, while the Revenue Authority is established before the end of next year.
Big business can expect to pay more through the business fund levy and green fund, with a taxation regime to be devised for the gaming industry.
However, there will be multiple incentives for the Agriculture sector with tax exemptions for agriculture-related tools, supplies and chemicals.Imbert also disclosed that the Judiciary would be given the financial autonomy that he had sought for many years. In 2016 there would also be the introduction of a video conference system from remand Yard, with lay magistrates to deal with minor offences in order to deal with the backlog of cases.
And $2.772 billion will go to Tobago, which represents 4.4 percent of the total budget, significantly above minimum, and more in percentage terms than Tobago from the Peoples Partnership government. He said that Tobago is to receive a further $1.13 billion from Central Government.
In addition, Imbert said the Solomon Hochoy Highway Project to Point Fortin would be completed, and the highway between San Fernando to Mayaro would be started, along with a new road to Toco (where a ferry terminal to Tobago is th be constructed), and a new road to Moruga, where new fishing facility would be built.
Other highlights:- There will be a review and audit of the Children's Life Fund, the brainchild of the former prime minister Kamla Persad-Bissessar.
- The government to make full use of the sporting facilities nearing completion.
Budget Figures:
Total Revenue:$60.28 billion.
Total Expenditure: $63.048 billion.
Pegged oil Price:US$45
National Security: $10.81 billion
Education and Training: 9.763 billion
Health: $6.088 billion
Public utilities $4.452 billion
Local government $2.72 billion
Works and Infrastructure: $1.95 billion
Housing: $1.663 billion
Transport: $1.563 billion
Agriculture: $831 million
