National Budget

Key Macroeconomic indicators
  • Real GDP contracted by 6 percent in 2016, as the petroleum sector and non-petroleum sector contracted by 11.1 percent and 1.9 percent, respectively.
  • Real GDP is expected to contract by 2.3 percent in 2017
  • Expenditure is based on an oil price of US$52.00 per barrel and a gas price of $2.75 per mmbtu
  • Total Revenue for the fiscal year 2017 was $37.9 billion. Expenditure for 2017 is expected to measure $50.5 billion
  • A fiscal deficit of $12.6 billion was recorded for 2017
  • Total Revenue for the fiscal year 2018 is expected to be $45.7 billion. Expenditure for 2018 is expected to measure $50.5 billion
  • A fiscal deficit of $4.8 billion (3.1 percent of GDP) is projected for 2018

Areas of interest


Fiscal Measures


Gambling Industry
  • Increased taxes on gaming tables and other devices by private members’ clubs effective January 1, 2018:
    Baccarat Table - $100,000 per annum
    Black Jack Table - $120,000 per annum
    Caribbean Stud Poker Table - $150,000 per annum
    Dice Table - $70,000 per annum
    Poker Table - $60,000 per annum
    Roulette Table - $120,000 per annum
    Electronic Roulette Device - $120,000 per annum
    Rum 32 Table - $150,000 per annum
    Sip Sam Table - $150,000 per annum
    Slot Machine - $24,000 per annum
    Every other table or device - $60,000 per annum
  • The rate of duty on all mechanical games of chance for gambling will increase from 20 percent to 40 percent effective October 20, 2017
  • All cash winnings by the National Lotteries Control Board (NLCB) will be taxed by 10 percent effective December 1, 2017
  • Implementation of a flat device tax of $120,000 per annum for electronic roulette devices operating in bars
  • Increase in annual gaming tax under the Liquor Licence Act from $3,000 to $6,000 per amusement game
Corporation Tax
  • Harmonization of the corporation tax rate; base tax rate bracket to increase from 25 percent to 30 percent effective January 1, 2018
  • Introduction of a new tax bracket of 35 percent on chargeable profits for commercial banks effective January 1, 2018
Motor Vehicles
  • Removal of all incentives currently available to passenger vehicles with engine sizes exceeding 1599cc effective October 20, 2017 (Moratorium up to December 31, 2017 for vehicles already in transit or already landed).
  • Motor vehicle tax and customs duty to increase by 25 percent for private passenger vehicles with engine sizes exceeding 1599cc and not exceeding 1999cc effective October 20, 2017 (Moratorium up to December 31, 2017 for vehicles already in transit or already landed)
  • Motor vehicle inspection fee to increase from $165 to $300 effective December 1, 2017
Import Duty on Tyres
  • Harmonization of customs duty on all tyres at 30 percent, whether new or used effective October 20, 2017. (Customs duty for new tyres utilized for buses and lorries will remain at 15 percent)
  • Implementation of an environmental tax of $20 per tyre on all imported tyres effective December 1, 2017
Energy Sector
  • Implementation of a 12.5 percent royalty rate across the board on the extraction of all gas, condensate and oil effective December 1, 2017
Fuel Subsidy
  • Price of Super Gasoline to increase from $3.58 per litre to $3.97 per litre and the price of Diesel from $2.30 per litre to $3.41 per litre with immediate effect
Private Hospitals
  • Licenses fees for private hospitals classified as Medical or Surgical Hospital, Medical, Surgical and Maternity Hospital or Maternity Hospital will be increased accordingly:
    Less than 30 beds - $25,000 per annum
    More than 29 beds but less than 60 beds - $50,000 per annum
    60 beds and over - $100,000 per annum
    (Effective January 1, 2018)
  • Increase in penalty for persons found guilty under the Private Hospitals Act from $10,000 to $100,000 and increase in penalty for continuing offence from $200 per day to $1,500 per day effective January 1, 2018
Incentives

Tourism: Hotel and Guest Room Stock Upgrade programme to continue. The expenditure cost that can be reimbursed per room increased from 25 percent to 50 percent and the maximum reimbursement limit increased from $750,000 to $1.5 million. The incentives for the Small Approved Tourism Properties programme were also doubled.

Exports: From January 1, 2018 a US$100 million EximBank facility will be established to allow eligible exporters access to foreign exchange.

Manufacturing: From January 1, 2018 export allowances to be re-established for manufacturers.

Agriculture: Financial support programme for farmers, with grants up to $100,000, to be established by December 1, 2017

Housing: Cash incentive of up to $100,000 to all approved developers who construct housing units in accordance with government’s designs, specifications and prices

Major Allocations

Tobago: Total allocation - $2.1936 billion

  • Recurrent expenditure - $1.86 billion
  • Capital expenditure - $0.316 billion
  • Unemployment Relief Programme (URP) - $0.018 billion

Education and Training: Allocation - $7.2905 billion

National Security: Allocation - $6.2371 billion

Health: Allocation - $6.0278 billion

Public Utilities: Allocation - $3.5454 billion

Works and Transport: Allocation - $3.0912 billion

Rural Development and Local Government: Allocation - $1.8494 billion

Housing: Allocation - $1.0052 billion

Agriculture: Allocation - $0.5446 billion

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