Mid-year Budget Review highlightshttp://www.looptt.com/content/mid-year-budget-review-highlightsThe country’s 2015-2016 budget of $63 billion has been revised down to $59 billion, pegged on a budgeted oil price of US $35 per barrel and a gas price of $2 per mmbtu.
Revenue is set at $44 billion, while the fiscal deficit is four percent of the country’s Gross Domestic Product (GDP).
A number of measures were announced during government’s Mid-year Budget Review in Parliament today, including increased taxation on several goods and services.
Here’s a look at the top 10 measures as indicated by Finance Minister Colm Imbert:
1. The cost of super gasoline will be increased by 15 percent to $3.58 and diesel also by 15 percent to $2 per litre. The measure will be implemented with immediate effect.
2. A seven percent levy on online purchase of goods and services through the internet from retail companies resident overseas that are not subject to taxes in this country, for example, Walmart, Amazon, Dell etc. This measure will take effect by September 2016.
3. A revised GATE programme will be announced in time for the start of the new school term with the aim of conserving expenditure and to ensure better alignment with the country’s development means. A committee mandated to review GATE will give its report by July 2016.
4. Imposition of increases on taxes for gaming, alcohol and tobacco industry. There will be increased taxes on alcohol and tobacco products effective May 2016, after legislation is passed.
5. Fifty percent increase in the customs duties and Motor Vehicle Tax on luxury vehicles with engine size exceeding 1999ccs, with immediate effect.
6. Fifty percent of arrears to be paid to public servants by end of June 2016.
7. CEPEP to be returned to its original moorings in 2017 when government intends to reduce its direct support for contractors. Meanwhile, URP will be restructured to include substantive community construction projects, with agriculture in rural areas.
8. Closing of $15 billion gap in revenue and with borrowings and one off items of extraordinary income, such as proceeds from the sale of CLICO assets, repayment of past lending to TGU (Trinidad Generation Unlimited), dividends from NGC (National Gas Company), drawdowns from the HSF (Heritage and Stabilisation Fund), the proceeds of the Phoenix Park IPO,
9. Tax concessions for the construction of multi-storey car parks and commercial buildings to be extended to 2025.
10. Tax holidays and other incentives to agricultural processing industries.
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